The VanEck Global Clean Energy ETF (ASX:CLNE) has just hit new multi-year highs. The same Middle East conflict that sent oil prices soaring and rewarded fossil fuel investors has simultaneously reminded every energy-importing government on earth exactly why energy independence matters. The result: a powerful re-rating of clean energy stocks as countries across Europe and Asia double down on 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 involved in renewable energy generation and clean energy technologies, including solar, wind and related infrastructure, and crucially, it fills a genuine gap on the ASX, where meaningful domestic clean energy names are scarce. New Zealand alone accounts for over 8% of the ETF’s exposure. The ETF currently holds 39 stocks, with its three largest positions being Bloom Energy (7.6%), Enlight Renewable Energy (6.4%) and Nordex (5.4%).
However, investors need to be conscious that it’s still underperforming the likes of FUEL and URNM ETFs. The structural challenge hasn’t changed: solar and wind still account for a fraction of total global energy consumption, and until that changes materially, traditional energy will continue to hold the performance advantage. The new highs are real, and the war-driven narrative is compelling, but CLNE remains a long-term conviction trade, not a short-term momentum play.
- We like the CLNE and can initially see another ~10% upside as it breaks out to fresh 2-year highs.
