Clean energy has long been touted as the future of life on Earth, and it looks like President Biden wants to make that future a reality with his latest $2 trillion infrastructure plan.
And the iShares Global Clean Energy ETF (NYSEARCA: ICLN) could be one of the biggest beneficiaries of this plan.
Is there money in renewable energy?
Lots! The global renewable energy market is expected to reach a value of $1.5 trillion by 2025 — a CAGR of 6.1% — and ICLN wants to be at the heart of this.
ICLN’s mission is to “track the investment results of an index composed of global equities in the clean energy sector.” Investors in this ETF will be exposed to companies that produce energy from solar, wind, and other renewable sources. Its top holdings are Plug Power, Enphase Energy, and Verbund.
So why is the President’s bill good for ‘clean’ investors?
Well, almost 10% of that bill will be going directly towards clean energy, with $174 billion earmarked for renewable energy and electric vehicle (EV) infrastructure. The President wants to use that money to boost the markets for electric vehicles via charging point construction, more U.S. production of EV components and batteries, and funding new consumer rebates and tax incentives to make EV’s more affordable. On top of that, it will be extending tax credits for wind, solar, and energy storage facilities by ten years, driving down the cost of the technologies for energy buyers.
Don’t be surprised to see ICLN leading the way as green energy grows and grows, and with a green-thinking administration at the helm, we could be in for at least four years of growth.
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Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.