Investors lost group bets this year with solar panel and wind turbine makers. Their response: doubled.
Last year, green stocks and the funds that followed them rallied sharply following a market recovery from the pandemic-induced blackout.
Solar panel and wind turbine companies are among those that benefit from the growing demand for renewable energy by investors and consumers, although many are marginally unprofitable.
This year, returns are behind the broader stock market. This is in part thanks to stocks that have run so far and how uncertainty over the course of the Federal Reserve’s (Fed’s) interest rate and central bank action might ultimately affect growing stocks.
The exchange-traded fund that tracks the renewable energy index has posted double-digit declines this year. BlackRock is down 16 percent since December. Invesco Ltd.’s popularity has dropped about 11 percent.