I’ve discussed the impact various accelerating secular growth trends are likely to have for exchange traded fund (ETF) investors in the past, and I’ve commented on the iShares Global Clean Energy ETF (TSX:ICLN) in this light.
In this article, I’m going to discuss one very important potential catalyst for this ETF I see playing out in the near-term that could have a significant impact for long-term investors.
Clean energy investment has traditionally boomed during previous Democratic governments in the United States. During the Obama Administration, billions of dollars were earmarked to spur investment in this sector as a way to encourage job creation as well as climate commitments, given the need we see for a change in climate policy toward green alternatives from the fossil fuel industry.
With a U.S. election on the horizon, and a majority of investors with the belief that a Democratic victory is more likely than not, placing bets on the future outlook for this sector have picked up.
For those less enamored with recent polls and less likely to believe said polls after the last election, consider the impact of Environmental, Social, and Governance (ESG) changes to the investment landscape in recent year.
Tremendous amounts of capital have continued to flow into clean energy irrespective of the current political climate, adding a strong positive under-current to this accelerating secular growth trend, making this ETF a great way to play this hopeful long-term transition our future generations need.
Invest wisely, my friends.
