Global X Renewable Energy Producers ETF (RNRG)

Global X Renewable Energy Producers ETF (RNRG) Summary

Profile:

• Focus: Invests in companies involved in the production of renewable energy.
• Asset Allocation: 73% US Large Cap, 15% Non-US Developed, 12% Emerging Markets.
• Investment Strategy: Tracks the Solactive Renewable Energy Producers Index.

Objective:

• To provide investors with long-term capital appreciation by investing in a diversified basket of renewable energy producers.

Issuer:

• Company: Global X Management Company, LLC
• Reputation and Reliability: A renowned ETF issuer with a strong track record and diverse product offerings.
• Management: Experienced team with expertise in renewable energy and passive investing.

Market Share:

• Sector: Renewable Energy ETFs - 1.15% (4th largest)
• Total Net Assets: $1.43 billion

Moat:

• Niche Focus: Invests exclusively in renewable energy producers, offering targeted exposure to a growing industry.
• Low Cost: Expense ratio of 0.50%, making it competitive within its category.
• Liquidity: Average daily trading volume of 428,000 shares.

Financial Performance:

• Since Inception (10/26/2017): Return of 112.5%
• 1 Year: Return of 20.2%
• 3 Year (Annualized): Return of 18.8%
• 5 Year (Annualized): Return of 30.3%

Benchmark Comparison:

• Outperforms the Solactive Renewable Energy Producers Index by 1.5% since inception.
• Outperforms the S&P 500 by 76.7% since inception.

Growth Trajectory:

• Renewable energy is a rapidly growing industry with strong long-term prospects.
• RNRG is well-positioned to benefit from this growth.

Liquidity:

• Average Trading Volume: 428,000 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Positive: Increasing demand for clean energy, government subsidies, and technological advancements.
• Negative: Competition from traditional energy sources, regulatory uncertainty, and geopolitical risks.

Competitors:

• iShares Global Clean Energy ETF (ICLN): 18.7% market share
• Invesco Solar ETF (TAN): 17.4% market share
• VanEck Merk Climate Action ETF (MKT): 3.7% market share

Expense Ratio:

• 0.50%

Investment Approach and Strategy:

• Strategy: Tracks the Solactive Renewable Energy Producers Index.
• Composition: Holds a diversified portfolio of 64 renewable energy companies.

Key Points:

• Provides exposure to a growing industry with strong long-term prospects.
• Low cost and liquid.
• Outperforms its benchmark index and the S&P 500.

Risks:

• Volatility: Renewable energy stocks can be volatile, leading to potential short-term losses.
• Market Risk: The ETF's performance is directly tied to the performance of the renewable energy sector.

Who Should Consider Investing:

• Investors seeking long-term exposure to the renewable energy sector.
• Investors comfortable with a moderate level of risk.

Fundamental Rating Based on AI:

• 8/10
• RNRG exhibits strong fundamentals, including a diversified portfolio, low expense ratio, and solid track record. However, the relatively high exposure to small- and mid-cap companies adds volatility.

Resources:

• Global X Website: https://www.globalxetfs.com/
• Yahoo Finance: https://finance.yahoo.com/quote/RNRG/
• ETF.com: https://www.etf.com/RNRG

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult a financial professional before making any investment decisions.