Past performance may not guarantee future results. But in momentum-driven markets, things that have worked lately will often still work. The most powerful trends of many stock markets will affect companies not just in one year. But still affects for a long time
One of these trends is the drive towards electric vehicles and renewables. Many of the individual stocks that ride the wave are getting big gains in 2020, even if you like the wide exposure at business-focused exchange funds. But you can still make some serious money in 2020.
Invesco WilderHill Clean Energy ETF (NYSEMKT: PBW) and Global X Lithium & Battery Tech ETF (NYSEMKT: LIT) It is one of the top ETFs of 2020.It also has a 2021pre-bill, which is gaining strong interest in electric vehicles, renewables and other clean technology initiatives.
How to buy a faster EV
The Invesco Wilderhill Clean Energy ETF has tripled its shareholder value in 2020 and has also made a strong start in 2021, gaining an additional 22% in just a week and a half.
The Invesco Fund has a broad investment objective to find companies in clean energy and conservation. In practice, that includes nearly four dozen companies in specific areas, from electric cars and charging infrastructure to solar power and lithium mining. About three quarters of stocks are in the US. The top-performing holdings are China’s EV leaders. NIO (NYSE: NIO)Solar energy supplier SolarEdge Technologies (NASDAQ: SEDG)And mining companies Lithium america (NYSE: LAC).
With a 0.70% expense ratio, Invesco’s ETFs are not all cheap. However, for those who do not want the risk of having small amounts of individual stocks or the hassle of buying dozens of stocks to fit their entire portfolio, the fund does a good job of offering large exposure in Clean Energy Group.
Charging stocks of lithium and batteries
ETF Global X Lithium & Battery Tech had a rather weaker performance in 2020 than anywhere else. But it’s still more than doubled this year.This ETF has a much narrower focus, which is focused on mining, refining and the use of lithium in the production of rechargeable batteries for a wide range of applications.
It is not surprising to see a greater proportion of the Global X ETF’s portfolio in non-US companies. That’s because lithium is found in strategic locations around the world, companies are popping up in places where lithium has to be mined.
Global X has a strong performance from leading stocks. Albemarle (NYSE: ALB)Who are lithium suppliers Shares more than doubled in 2020 due to soaring demand for lithium.
But the ETF, which has an expense ratio of 0.75%, was also largely boosted by holding the electric vehicle leader. Tesla (NASDAQ: TSLA)With a second role both as a consumer of battery equipment and a maker of high-end battery technology, Tesla’s return has made itself a huge contribution, although the stock holds only 5.5%. ETF operations in 2021 as the fund gained nearly 15%.
Expected to increase from battery technology stocks in 2021.
Electric car manufacturers are getting started with an effort, many upstart companies have yet to start building vehicles. Even people with a head have a long way to go before they step.
That shows that suppliers of key components will do well in the future 2021 is likely to be even more successful for these two ETFs and the companies that are in their portfolios.