The VanEck Global Clean Energy ETF (CLNE) has just hit new multi-year highs earlier this month, demonstrating the world’s growing appetite for energy, both clean and “dirty.” The Iran conflict led to a powerful re-rating of clean energy stocks as countries across Europe and Asia ramped up their investment in solar, wind, and battery infrastructure to reduce their vulnerability to future supply shocks.
This ASX-traded ETF provides investors with exposure to a diversified portfolio of global companies filling a genuine gap on the ASX, where meaningful domestic clean energy names are scarce. Such is the nature of the current energy cycle; this ETF is underperforming more traditional energy stocks/ETFs, for now at least, with solar and wind still accounting for a fraction of total global energy production; hence, the CLNE remains a long-term conviction trade, not a short-term momentum play.
- We like the CLNE and can initially see new highs after a period of consolidation.
