First Trust Nasdaq Clean Edge Green Energy UCITS ETF
| Issuer: First Trust |
| Asset Class: Equity |
| TER: 60bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 03 Feb 2021 |
| Ticker: QCLN |
| ISIN: IE00BDBRT036 |
This financial product provides targeted exposure to companies at the forefront of the green energy transition. It focuses on businesses involved in the manufacturing, development, distribution, and installation of clean energy technologies, including solar photovoltaics, wind power, and advanced battery storage. The portfolio also includes companies involved in enabling technologies such as electric grids and energy management systems. By investing in this basket of securities, investors gain access to a diversified group of innovators and established players driving the global shift away from fossil fuels towards sustainable energy sources.
The global push for decarbonization, supported by government policies, technological advancements, and increasing consumer demand for sustainability, provides strong tailwinds for the green energy sector. This investment captures the growth potential of this long-term structural trend. The fund includes companies from various segments of the clean energy value chain, from raw material providers to end-product manufacturers, which can help mitigate risks associated with any single technology or sub-sector. It is designed for investors seeking to align their portfolios with environmental objectives while participating in the potential growth of an industry critical to combating climate change.
This instrument is suitable for investors looking to add a thematic satellite holding to a well-diversified core portfolio. It offers a convenient and cost-effective way to invest in a specific market niche that might otherwise be difficult to access. Given its focus on a specific high-growth, technology-driven sector, it may exhibit higher volatility compared to broad market indices. Therefore, it is best suited for investors with a longer-term investment horizon and a higher tolerance for risk who believe in the continued expansion of the clean and renewable energy industry.
