Biden or Trump: Clean Energy ETFs to Soar Ahead
Zacks Investment Research | Oct 21, 2020 02:04AM ET
Clean energy ETFs have been riding higher in recent years. The journey has been especially stellar this year with ETFs gaining at least 50%. In comparison, SPDR S&P 500 ETF (NYSE:SPY) driven by growing consumer electric vehicle adoption , state expansions of charging infrastructure, falling battery prices and increased solar-storage installations.”
Plus, demand for solar panels were rising as many U.S. solar companies were hoarding panels to take advantage of the full solar subsidy that are due to end in 2020.
The cost of renewable energy generation has been going downhill in recent years. The demand for solar panels is rising globally. Tesla (NASDAQ:TSLA) 3 Top Sectors of Q3 & Their Top ETFs ).
Against the global backdrop, China and Europe are major players building a green environment. Big corporations are also making or promising investments in achieving the most-coveted carbon neutral status (read: Here's Why Clean Energy ETFs Are Shining Bright ).
h3 What If Biden Wins?/h3If this was not enough, considerable chances of Democrats winning the U.S. presidential election is also benefiting the space as Biden has expansionary plans for clean energy.
Biden is forming a plan — a Clean Energy Revolution — to address the issue of climate emergency. He sees America as becoming a 100% clean energy economy by 2035 and having net zero emission by 2050.
Biden has released a $2-trillion-plan toward combating climate change that will eliminate carbon emissions from the power grid by 2035 and accelerate the uptake of electric vehicles. If this happens, the entire supply chain of the electric vehicle industry will be charged up.
According to the source, about 47% of total electric vehicles running globally are on the roads of China and 20% are in the United States. The majority of U.S. electric vehicles are being made by Tesla.
Now, Biden plans to upgrade 3 million vehicles into the electric form that the government regularly purchases. These would all be indigenous vehicles. The plan also envisages new job creation with the federal government helping to build 500,000 electric vehicle charging stations, and supporting research focused on battery technology.
Biden has pledged to extend the ending tax incentives for renewable energy projects and support the pickup of projects like energy-efficient buildings. “The growth outlook for electric vehicles, renewables, hydrogen power, battery storage and many more industries would be turbocharged” on Biden’s winning, said Simon Webber, a Schroders (LON:SDR) portfolio manager for global equities, quoted on Wall Street Journal.
h3 ETFs in Focus /h3So, no matter who becomes the president of the United States, clean energy ETFs like???Invesco Solar ETF Get it free >>
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