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Clean Energy: A Megatrend That's Here to Stay

Andres Rincon

Clean Energy: A Megatrend That's Here to Stay

Snapshot
Clean energy is one megatrend that will be with us for the rest of our lives. Every day we consume finite resources that are damaging to the environment and are becoming expensive to develop. As a society, we are transitioning into more sustainable ways to maintain our energy intensive world. ZCLN provides exposure to the increasing growth in global clean energy through the world's most invested clean energy index.

Details
BMO Clean Energy Index ETF (Ticker: ZCLN)

Trade Idea – ZCLN
The shift toward more renewable energy sources to carry on our daily lives is driven in part by a growing population that is more environmentally and socially responsible. Whether it be solar, wind, geothermal or hydro, these carbon neutral options have unlimited supply and will help create a cleaner, healthier society. In addition, a Biden win and blue wave in the senate is a net positive for clean energy. Climate change is important to the Biden administration, which has already signaled a tougher stance on carbon emissions and proposed a $2 trillion spend in clean energy and infrastructure.

Every day, we consume electricity and fuel through the use of finite resources like coal, gas, and other fossil fuels. Unfortunately, these are becoming increasingly more expensive to extract, and can irreparably harm the environment. As such, the long-term usage of many of these finite resources are experiencing declines, while renewable energy sources are increasing. It is expected that in the next 15 years, the use of renewables will surpass that of coal, oil, and gas, to name a few.

BP’s Forecast for Shares of Primary Energy Sources in the Event of a Rapid Transition

We believe ZCLN is ideally positioned to take advantage of the growth in clean energy given its global footprint and focus on the larger-cap proven names in the space. The focus on market cap-weighted will ensure that growth is rewarded, but without added volatility.

Two Tails of Energy
ZCLN is a great replacement tool for investors looking to transition into the New Energy space. The ETF can also be used to complement a portfolio that currently does not have any energy exposure. Clean energy has seen exceptional performance over the last two years, and has outpaced fossil-based energy over the last ten years.

Global Clean Energy. Vs Traditional Global Energy – Growth of 10,000 over 10 years

Follow the Money

ZCLN tracks the S&P Global Clean Energy index, which happens to be the most widely tracked clean energy index in the world. Over the last two years, ETFs that track the S&P Global Clean Energy index have gathered over USD$8bn in new assets, most of which has accumulated since the start of the COVID-19 pandemic. Investors have made a clear choice as to where to park their money when it comes to clean energy.

ETFs Linked to S&P Global Clean Energy – Inflows


Andres Rincon

Clean Energy: A Megatrend That's Here to Stay

Snapshot
Clean energy is one megatrend that will be with us for the rest of our lives. Every day we consume finite resources that are damaging to the environment and are becoming expensive to develop. As a society, we are transitioning into more sustainable ways to maintain our energy intensive world. ZCLN provides exposure to the increasing growth in global clean energy through the world's most invested clean energy index.

Details
BMO Clean Energy Index ETF (Ticker: ZCLN)

Trade Idea – ZCLN
The shift toward more renewable energy sources to carry on our daily lives is driven in part by a growing population that is more environmentally and socially responsible. Whether it be solar, wind, geothermal or hydro, these carbon neutral options have unlimited supply and will help create a cleaner, healthier society. In addition, a Biden win and blue wave in the senate is a net positive for clean energy. Climate change is important to the Biden administration, which has already signaled a tougher stance on carbon emissions and proposed a $2 trillion spend in clean energy and infrastructure.

Every day, we consume electricity and fuel through the use of finite resources like coal, gas, and other fossil fuels. Unfortunately, these are becoming increasingly more expensive to extract, and can irreparably harm the environment. As such, the long-term usage of many of these finite resources are experiencing declines, while renewable energy sources are increasing. It is expected that in the next 15 years, the use of renewables will surpass that of coal, oil, and gas, to name a few.

BP’s Forecast for Shares of Primary Energy Sources in the Event of a Rapid Transition

We believe ZCLN is ideally positioned to take advantage of the growth in clean energy given its global footprint and focus on the larger-cap proven names in the space. The focus on market cap-weighted will ensure that growth is rewarded, but without added volatility.

Two Tails of Energy
ZCLN is a great replacement tool for investors looking to transition into the New Energy space. The ETF can also be used to complement a portfolio that currently does not have any energy exposure. Clean energy has seen exceptional performance over the last two years, and has outpaced fossil-based energy over the last ten years.

Global Clean Energy. Vs Traditional Global Energy – Growth of 10,000 over 10 years

Follow the Money

ZCLN tracks the S&P Global Clean Energy index, which happens to be the most widely tracked clean energy index in the world. Over the last two years, ETFs that track the S&P Global Clean Energy index have gathered over USD$8bn in new assets, most of which has accumulated since the start of the COVID-19 pandemic. Investors have made a clear choice as to where to park their money when it comes to clean energy.

ETFs Linked to S&P Global Clean Energy – Inflows


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