Current Trends Are In Favor of The Global Wind Energy ETF

The ETF is heavily concentrated in its top 10 holdings into which it puts more than 60% of the total assets. Hence, the returns of the fund are largely dependent on the performance of these securities. Vestas Wind Systems, Gamesa Corporacion Tecnologica, S.A. and China Longyuan Power Group-H are its top three holdings which jointly contribute 22% to the fund.

Sector-wise, utilities take the top spot, followed by industrials and energy. The top 3 country holdings for the product include Spain, Germany and U.S. which combine to contribute 48% of the fund’s assets.

FAN trades roughly 30,000 shares a day while costs come in at 60bps in fees per year. The ETF has posted solid returns of 33.81% as of June 30 for a one-year period and has given a decent dividend yield of 1.23% as well.

FAN has recently hit a 52-week high of $9.70. On July 26, FAN recorded solid inflows, suggesting that there is good investor demand for the product.

The Bottom Line

The alternative energy sector has been running like the wind, crushing the broad market in the past few months by a pretty wide margin. Given the dramatic move higher in the space, one can certainly argue that clean energy is finally in a bull market environment (read Behind the Rebound in Energy ETFs).

Current trends are in favor of the wind energy sector and we see the space nicely rebounding with good potential to outperform. It’s good to hoist your sail when the wind is fair, as the saying goes, and that definitely appears to be the case for investing in FAN right now.

This article is brought to you courtesy of Eric Dutram.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *