The fund has $61.42M in AUM and had a net asset value (NAV) of $21.32 per share as of July 22, 2021. The BMO Clean Energy Index is no different, with low MER fees of 0.40%. The nice part about index funds is that the fees are typically quite reasonable. The Index has approximately 100 constituents and is “designed to measure the performance of companies in global clean energy-related businesses from both developed and emerging markets.” The Fund aims to replicate the S&P Global Clean Energy Index. The fund is re-balanced semi-annually which means the 2.5% weighting won’t be perfect as much can happen within a six month timeframe.Īnother new fund, the BMO Clean Energy Index ETF ( TSE:ZCLN) was launched on January 20, 2021. That means each position will account for approximately 2.5% of the portfolio. The fund is unique in the sense that it is equally weighted across all 40 positions. One of the newest ETFs to launch, the Harvest Clean Energy ETF ( TSE:HCLN) invests in a portfolio of the 40 largest Clean Energy Issuers selected from the Clean Energy Investable Universe. So what are the best Canadian renewable energy ETFs to buy right now? Harvest Clean Energy ETF (TSX:HCLN) As such, it is becoming increasingly difficult to separate traditional utilities which are investing heavily in renewables from pure play renewable companies. This is not all that surprising when one considers the fact that renewable energy companies are continuously taking market share from traditional energy sources. Some of these ETFs have high exposure to renewable energy companies. The last option for investors looking to get exposure to the renewable energy industry is to invest in a traditional utility ETF. The good news is that both have AUM above $50M and are supported by two of the largest fund providers in the country – Harvest and BMO. Interestingly enough, both of these ETFs launched in early 2021. To our surprise, there were only two renewable energy ETFs listed on the TSX For the purposes of this piece we ensured the ETFs had minimum assets under management of $50M. Similarly, the higher the AUM, the better. The larger the fund manager, such as a major financial institution, the more likely the fund is to continue operating. The first being the fund manager, and the second being assets under management (AUM). Research has shown that there are two predominant factors that help keep funds afloat. However, since we are in the early stages of this shift, it can be difficult to figure out which companies will lead the pack, and more importantly which will be around in 10 years’ time. With companies like Lion Electric (TSE:LEV) hitting the market many investors are beginning to recognize that there is a clear shift towards renewable energy. Investing in industry-focused ETFs is even more attractive when said industry is in its infancy. It enables investors to own a basket of Canadian stocks, which may be quite enticing, especially if it is not clear which companies are the industry leaders. Here is a list of our partners.One of the most attractive aspects of investing in exchange traded funds (ETFs) is the ability to get wide-spread exposure to various industries. Our partners cannot pay us to guarantee favorable reviews of their products or services. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. So how do we make money? Our partners compensate us. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward - and free. We believe everyone should be able to make financial decisions with confidence. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. They are not intended to provide investment advice. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. is an independent publisher and comparison service, not an investment advisor.
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