iShares Global Clean Energy ETF (ICLN)

iShares Global Clean Energy ETF (ICLN) Overview

Profile:

The iShares Global Clean Energy ETF (ICLN) is an exchange-traded fund that invests in companies engaged in the clean energy sector. The ETF tracks the S&P Global Clean Energy Index, which includes companies involved in renewable energy generation, energy efficiency, and sustainable transportation. ICLN utilizes a market-cap weighted sampling approach and reinvests dividends.

Objective:

The primary investment objective of ICLN is to provide long-term capital appreciation by tracking the performance of the S&P Global Clean Energy Index.

Issuer:

BlackRock

• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong reputation for innovation and reliability.
• Management: The ETF is managed by BlackRock's experienced team of portfolio managers, including Christopher Engle and Christopher Hyzy.

Market Share:

ICLN is one of the largest clean energy ETFs globally, with a market share of approximately 13.5% in the clean energy ETF category.

Total Net Assets:

As of November 10, 2023, ICLN has total net assets of approximately $7.6 billion.

Moat:

• First-mover advantage: ICLN was one of the first clean energy ETFs launched, giving it an established track record and brand recognition.
• Broad diversification: ICLN holds a diversified portfolio of over 100 clean energy companies, reducing sector-specific risks.
• Low expense ratio: ICLN's expense ratio of 0.47% is relatively low compared to other clean energy ETFs.

Financial Performance:

• Year-to-date (YTD) return: As of November 10, 2023, ICLN has a YTD return of 2.22%.
• Five-year annualized return: ICLN has a five-year annualized return of 18.83%.
• Benchmark Comparison: ICLN has outperformed its benchmark index, the S&P Global Clean Energy Index, over the past three and five years.

Growth Trajectory:

The global clean energy sector is expected to continue experiencing significant growth in the coming years, driven by factors such as government initiatives, technological advancements, and increasing environmental awareness. This bodes well for ICLN's future growth potential.

Liquidity:

• Average Trading Volume: ICLN has an average daily trading volume of over 10 million shares, making it a highly liquid ETF.
• Bid-Ask Spread: The average bid-ask spread for ICLN is around 0.02%, indicating low trading costs.

Market Dynamics:

Factors affecting ICLN's market environment include:

• Government policies: Government subsidies and regulations can significantly impact the growth of the clean energy sector.
• Technological advancements: Advancements in renewable energy technologies can drive down costs and improve efficiency.
• Energy prices: Fluctuations in oil and natural gas prices can impact the competitiveness of clean energy sources.

Competitors:

• Invesco Solar ETF (TAN): Market share: 11.7%
• VanEck Global Clean Energy ETF (GEX): Market share: 9.2%
• First Trust Global Wind Energy ETF (FAN): Market share: 7.4%

Expense Ratio:

ICLN's expense ratio is 0.47%.

Investment Approach and Strategy:

• Strategy: ICLN tracks the S&P Global Clean Energy Index, which includes companies involved in renewable energy generation, energy efficiency, and sustainable transportation.
• Composition: ICLN's portfolio includes a diversified mix of companies across various clean energy sub-sectors, including solar, wind, hydro, geothermal, and fuel cell technologies.

Key Points:

• ICLN provides investors with exposure to the growing global clean energy sector.
• The ETF has a long-term track record and is backed by BlackRock's expertise.
• ICLN offers low fees, high liquidity, and broad diversification.

Risks:

• Volatility: The clean energy sector can be volatile due to factors such as government policies and technological advancements.
• Market risk: ICLN is subject to the risks associated with the underlying assets in its portfolio, including companies involved in renewable energy generation.

Who Should Consider Investing:

Investors who believe in the long-term growth potential of the clean energy sector and are comfortable with the associated risks may consider investing in ICLN.

Fundamental Rating Based on AI:

8/10

ICLN receives a strong rating due to its solid fundamentals, including a diversified portfolio, experienced management team, and attractive expense ratio. The ETF also benefits from the long-term growth potential of the clean energy sector. However, investors should be aware of the volatility associated with this sector.

Resources and Disclaimers:

• iShares Global Clean Energy ETF website: https://www.ishares.com/us/products/etf-detail?symbol=ICLN
• BlackRock website: https://www.blackrock.com/us/individual/products/ishares/overview
• S&P Global Clean Energy Index: https://us.spindices.com/indices/equity/sp-global-clean-energy-index
• Morningstar: https://www.morningstar.com/etfs/arcx/icln/quote

Disclaimer: The information provided above is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.