Excerpt from Capital.com, April 24, 2020
Capital.com.
Exchange traded funds (ETFs) are financial instruments that track an index, commodity, sector or a basket of stocks or bonds and are traded like stocks. One of the most attractive aspects of ETFs is … can provide traders with diversification with a smaller upfront investment compared to trading individual stocks.
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What are the best ETFs to invest in 2020?
When considering what are the best ETFs to invest in 2020 traders need to consider their individual goals, time horizon and risk tolerance. Coronavirus has turned the global economy on its head and there is no certainty when it will recover completely. There are also opportunities to buy the top performing exchange traded funds … due to the fact that many have not fully recovered from the crash of mid-March. Below we will look at four of the best ETFs to invest ….
Invesco Global Clean Energy ETF
Plummeting oil prices offer a valuable opportunity for clean energy. The Invesco Global Clean Energy ETF (PBD) tracks stocks of companies operating in utilities, hydro/solar/wind electricity generation, biofuels and other forms of clean energy. It is benchmarked to the Wilderhill New Energy Global Innovation Index.
While it may seem that lack of demand for energy would make it a poor choice of ETFs to invest in, there are multiple reasons why clean energy should be on your radar. Clean energy, like almost all sectors, did drop significantly in the crash of mid-March however as the global economy seeks to rebound from the Covid-19 crisis clean energy development and investment presents multiple benefits.
Governments suffering from the lack of production due to global oversupply of oil will look to clean energy production as a national security priority in the coming months. Even the US, with its massive shale gas production, will be looking at clean energy technology development as a mechanism for job creation as well as a future buffer to wild swings in production and demand from other countries.
As the economy recovers, consumers will inevitably remember the cleaner air that the crisis allowed for and pressure their governments to reduce pollution, particularly in the worst mega cities which are seeing the best air quality in decades.
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