Leading ASX-listed ETF provider BetaShares will soon launch two new ETFs focused on alternative energy sources - solar and uranium.
Note: the ETFs are still subject to regulatory approval, tickers are indicative
According to BetaShares, the Solar ETF will provide investors exposure to leading global companies in the solar industry. This includes:
Solar panel manufacturers
Inverter supplies
Installers
Manufacturers of solar-powered charging
Energy storage systems
Solar project finance companies
Solar is becoming an increasingly viable low-cost option for electricity generation, even in the midst of surging commodity prices.
The International Energy Agency estimates that solar's contribution to total electricity production will grow from circa 3% in 2020 to circa 30% by 2050.
There is a US-listed Solar ETF (NYSE: TAN) that's operated by Invesco. Both Betashares and Invesco ETFs should theoretically be very similar in nature and composition.
The ETF's top 3 holdings (as at 05/25/2022) include:
Enphase Energy (10.92% of fund)
Nasdaq-listed solar energy management company
SolarEdge Technologies (8.70%)
Nasdaq-listed, manufactures solar inverters and monitoring systems
GCL Technology (6.72%)
Hong Kong-listed develops and manufacturers PV materials used for solar panels
The ETF is down -11.2% year-to-date and does not pay dividends.
The Uranium ETF will provide investors exposure to companies involved in:
Mining and exploration
Extraction and refining
Nuclear components and energy
Holding physical uranium and/or uranium royalties
Nuclear energy adoption is on the rise after a decade long bear market, triggered by the 2011 Fukushima nuclear disaster.
Nuclear energy is viewed as a safe, reliable and low-carbon energy source that can supplement the world's transition towards renewable energy.
The lack of investment into new uranium capacity and increasing pipeline of new nuclear power plants, notably from China, paints a bright outlook for the industry.
The BetaShares Global Uranium ETF should in theory be very similar to the Global X Uranium ETF (NYSE: URA).
The Global X ETF's top holdings (as of 05/25/2022) include:
Cameco (22.29% of net assets)
Toronto exchange-listed
One of the world's largest uranium miners
Sprott Physical (6.84%)
Toronto exchange-listed
Buys and holds physical uranium
The ETF has smaller allocations in ASX-listed names including Paladin Energy (ASX: PDN), BHP (ASX: BHP) and Boss Energy (ASX: BOE).
The ETF is down -3.3% year-to-date and does not pay dividends.
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