It’s expected when it grows so hard, but green energy is the way forward so I’m in it for long hail
In 10 years I’d expect it to be a lot more than just £14 
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Counting the £££
The big question is, how low will this go? It’s still 50% higher than it was before the pandemic so it could have further to fall.
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£8 probably.
The entire S+P clean energy index seems to be in freefall anyway. All of the ETFs for the sector listed on MorningStar are down at least 10%
If it goes below £8, I think I’d lose confidence in the sector - might be a bit short sighted of me, time will tell.
I think the new energy sector is going to do very well - wind and solar are just cheaper ways to generate power now - but I do think this ETF has been very badly managed and has had been weighted too heavily towards speculative gambles like Plug Power*. I’d like to see one that’s made up of established renewable companies.
I only hope its managers are panicking even more than people in this thread.
*I also believe hydrogen is coming but I think it’s risky to speculate on which new companies in that field will be the big winners. It might be the existing oil/gas/chemical companies that pivot and dominate.
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I would say this is a given. The big oil and gas companies aren’t just going to cease to exist once we are no longer using oil and gas. Their futures depend on moving to renewable fuels like hydrogen.
I agree with everything you said. This ETF looks poorly managed. Someone mentioned another green energy ETF recently but I’ve forgotten the name. Hopefully the admins can get that one on the app soon. I want to invest in green energy, but nothing looks good in the sector right now. Maybe there will be some bargains once stocks stop plummeting.
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I’ve invested in BP and they are shifting most of their efforts to green energy, I know shell are in deals to buy out the market leader in electric car charging points so they are making moves - besides in the UK there will be a ban on new petrol/diesel cars so electric will have to come in after 2030. I’m riding this for the absolute long hall.
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Badly managed - it’s up 60% this year.
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Agreed
The big question is how much will it be up when it reaches the bottom of the cliff? Besides, it’s only up 60% if you invested a year ago. I bet many didn’t and are worrying about losses. For someone not currently invested it doesn’t look great that it rises rapidly and falls just as fast. Invest at the wrong time and you’re sitting on big losses. Steady growth is better than wild swings up and down.
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So then the energy sector should be a satellite of your portfolio not the core, if this is your belief.
One of my favourite facts is that BP is the largest generator of solar energy in the UK. And they are only just starting to build out their own internal teams to pivot hard in this and Hydrogen’s direction.
A great point. You’ve got me there.
Perhaps I just prefer my ETFs without the wild swings and with more diversified holdings. Perhaps I also have no idea what I’m talking about when it comes to investing (highly likely).
I’m always surprised by how much solar puts in to the UK grid, even in winter. It’s a bit late in the day as I type that 17:41 and only 1.18% of UK generation but it’s not bad - https://www.gridwatch.templar.co.uk/
I do think it’s an absolute ****ing disgrace that houses are being built without full roof solar or at the very least without roofs that are optimised in direction/pitch for the addition of solar down the line. It should be a government requirement. Would it push new house prices up? Perhaps a little but it shouldn’t be a big swing if the market worked properly and was actually competitive. Future generations will not thank us.
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Agreed on the roof solar point, but as ever with these types of questions it has more to do with who finances it? Who bears the deployment risk? The warranty/value risk? Requirement to add a battery to it?
There are schemes being deployed nationally covered by some councils and private equity funders - but there are no current risk-adjusted deployment models which are easily fundable - and government will not want to be the backstop financier for this.
Eventually it will happen as market trends in the energy power/price segment are slowly going that way, but it won’t be imminent.
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As I understand it, they also cancelled the scheme that allowed you to sell excess electricity back into the grid from your solar panels. This only applies to new customers though, so there is even less incentive for some people to go for the solar panels, because let’s be honest ‘you’ll make money from it’ is the easiest selling point ever when it comes to something that can be a bit pricy for many people.
In fairness, I’m new to this as well and in hindsight (ho ho, captain obvious) the warning sign for me should have been the 120% spike from last year for this ETF. Anything going up that fast either is the new sliced bread, or is, as we are seeing now, going to face a huge drop.
Live and learn I guess. Now if I look at an ETF I want to see sustained growth and not spikey growth, or if there is spikey growth I want to find easily identifiable reasons for it spiking.
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Yes core of portfolio as above.
Satellite of your portfolio an etf like this which is high risk high return.
Yeah their stocks are super cheap right now too - I think this might be such a gem - they obviously have the experience and know probably better than any company how energy works. @ £4 a share I’m tempted to just put a load in and leave it for 10 years and cash in then.
Might literally be a hidden gen
I agree, the price swings seem to be quite extreme. It took the fund two months to go from £8.88 to its peak at £14.25 and another two months to get to £8.99 were it is now.
The reason for the fall in price aren’t clear but if it’s a resurgence of Big Oil (companies like BP investing heavily in renewables) then I doubt this ETF will recover any soon and we may as well sell now to cut losses
you would need to calculate fair value for the top 10 holdings in this fund.
If they are over evaluated a correction was long due.