hey guys how's it going it's Andy from Magoo investing happy Wednesday for the upcoming
month I know it is you know the 31st it's not the first so it's not the beginning of
the month but for the next month I’m going to be talking pretty much exclusively during the week
about green energy stocks and renewable energy stocks and the main reason behind that is
in my mind they are the best stocks to be buying for the next five to ten years and the
reason behind that is we've been seeing a lot of changes in the way the government has been
kind of discussing the future plans for investing in green energy and renewable energy and
it's put a lot of excitement into these types of stocks and they were some of the top performing
stocks of 2020. and when the recent news about the abide infrastructure project that came out
yesterday where they're going to be investing 2 trillion dollars in infrastructure plans
to rebuild 20 000 miles of roads rebuild 10 bridges and the elimination of lead
pipes and some investment and some EV stuff there's been a lot of excitement about the
potential of investing into green energy stocks and I feel like it's an area that I have a decent
amount of expertise this is the largest part of my portfolio when I look at my portfolio which I’ll
talk about in tomorrow's video I think around 50 to 60% of it could be considered renewable energy
stocks and so I’m pretty confident with that I have a degree in marine biology and I have a grad
degree in wildlife management so conservation and green energy I feel like go hand in hand so I’m
going to be talking about that for the next month because I think there's a lot of very interesting
opportunities out there and they're not household names like an amazon or an apple or a Microsoft
stuff that people are comfortable about I feel like you need to go and find as much information
as possible to really feel comfortable with it so that's what we're going to be talking about for
the next couple weeks and so since I’m going to be talking about a bunch of renewable energy stocks
be sure to leave some of your favorite green energy stocks in the comment section down below
and I’ll be sure to get to them by the end of this month also disclaimer this is not financial advice
and let's get right into it so the reason I decided to talk about this now is that with
the Biden administration coming in they've had some lofty goals set to try to improve the carbon
emissions going forward part of that plan uh comes with the idea of getting a carbon free power by
2035 and getting to net zero carbon emissions by 2050 and so obviously this is a long way away but
if you're investing for something for the long run I feel like this is the most set in stone bull
case considering that you have all these countries coming out and saying they want to get to these
targets in the upcoming years there's going to be a lot of money pouring into these types of
companies and that's why I’ve been investing in them heavily for the past year so today I thought
it would be probably the most logical way to start instead of talking about a specific stock I think
investing in specific stocks is great if it's in a well-known sector when I look at tech stocks
yeah you can look at something like a peloton and you have a pretty good understanding of how
the company runs there's plenty of information out there but the whole reason I think that the clean
energy stocks on my channel have done well in the past you know a couple months is because there's
not a lot of great information out there so I thought it would make a lot of sense to start with
one of my favorite etfs that follows the overall sector of just clean energy stocks overall and
so I’m going to start off by talking about why would you pick an etf compared to an individual
stock in this type of sector when I go and look at a specific type of stock or sector that I want
to buy in I want to see how much information I can find and how comfortable I am with it overall when
I look at tech stocks I’m incredibly comfortable looking at all these tech stocks reading the
numbers and having a general understanding of how these companies run but in my mind the best
way invest times we've gotten etfs or for sectors that you don't fully understand because it's tough
to find information on some types of companies yes you can find you know airline companies and
be very confident you don't need to buy I forget what the airline etf I think it's jet they all
have pretty funny names but when I look at the green energy sector there's so many companies that
aren't as well known or well established I think it does make a decent amount of sense to kind of
look at some of the etfs because not only does it allow you to not have to do as much research
and try to pick a winner or a loser out of a very volatile sector it allows you to benefit from the
law of large numbers where you're getting a lot of different companies they're going to average out
to be less volatile than picking an individual stock say you pick a you know a hydrogen fuel
cell company it does very well one year could be up like a thousand percent like something what
we've seen with uh plug power stock (PLUG Stock) or FCEL (FCEL Stock) or you could pick a stock
that's down 90% on one year and if you're buying into an etf that has you know 45 to 50 holdings
it's less likely that your position is going to explode because there's a lot less volatility when
you buy an etf so the etf that I wanted to talk about today in my mind is the most complete green
energy stock etf out there are some other options and we'll talk about why I prefer this one over
the others but it's going to be the ishares global clean energy etf with the ticker symbol $ICLN
when I usually look at you know the stocks that are getting traction and being discussed online
I see $ICLN (ICLN Stock) as being one of the most commonly discussed topics because it gives you a
lot of exposure to companies that have been very exciting in the past but do offer a lot of risk
so right now the company's trading for 24 and it's down 15 on the year but pretty much all of 2020
was fantastic for the green energy stocks overall and when I put up the one-year chart you can see
that it's up 153% in the past year even though it has sold off pretty significantly from its uh
recent highs back in January of this year looking back at this etf it first went public back in
the middle of 2008 if you remember what happened during 2008 with the financial crisis this is not
a great time to get involved with the overall stock market so it kind of makes sense why
you know the etf sold off aggressively at the beginning and when you think about
investing in green energy what is that 14 years ago 13 years ago
a little ambitious to be getting involved that early there was not a lot of movement going in
the right direction yes we had some solar panel stuff but there wasn't a lot of support from the
overall government and so I think the idea of investing in green energy makes a lot more sense
now than it did back when this was created back in 2008 and when you look at its entire history
on average it has returned negative four percent a year but that is because of the major selloff
that happened right when it went public so I don't think that that's too much of a worry whenever I
talk about etfs on this channel one of the things that people mentioned has to do with expense
ratios and they always mention why would you do this it's just cutting into your overall profits
the whole idea of an expense ratio is it is a fee that you pay to the company that creates the etf
for managing the fund and it can range between the percentages but the longer that things have
gone on the lower the expense ratios have gone in general mutual funds have higher expense ratios
and they're paid as a fee $ICLN (ICLN Stock) currently has an expense ratio of 0.46% which
is pretty good when you compare it to something like the arc etfs have been incredibly popular
that has an expense ratio for ARKK Stock which is just their general innovation fund
of 0.75% I also do think it's fascinating that the arc etfs haven't come out with a
green or even just like a solar type of innovation portfolio they went to space first but they didn't
think about energy just kind of scratched my head a little bit when that went public yesterday for
arc x which is the space exploration etf but let's take a look at the largest positions that
are held by $ICLN (ICLN Stock) because one of my favorite things about etfs is you can see exactly
what they're holding and when you look at the top holdings it makes sense why some of them are so
high of a weighting when it comes to the overall portfolio of the etf you have stuff like plug
power Stock (PLUG Stock) which has a seven point three eight percent weight in it makes
sense because plug power stock (PLUG Stock) is up like a thousand percent in the past year you can
see similar things with enphase energy stock (ENPH Stock) which is 5.5% and this is very common when
you look at etfs especially the arc etfs where tesla stock (TSLA Stock) was a major part of the
ARKK innovation portfolio just because it had such incredible returns in 2020 that you know if you're
holding it it's going to be a larger part of your portfolio overall so this makes sense you see
some common names in here like first solar stock (FLSR Stock) ticker symbol $FSLR you have meridian
energy Stock (MEL Stock) and then when you go to the second page there are some ones that I’ve been
seeing a lot of discussion about recently and I’ll be talking about them I can give them their own
videos eventually you have stuff like Sunrun stock (RUN Stock) which is ticker symbol $run and then
you have Canadian solar stock (CSIQ Stock) which is ticker symbol $CSIQ these will all be talked
about eventually but these are the weighting the for the first two pages what is this the top
20 holdings and overall I believe that ICLN Stock ($ICLN) has around 45 holdings but there has been
some discussion recently about things are going to get very volatile very quickly the idea is
that the index of this follows the clean etf is going to be increasing the amount of stocks in
that portfolio up to 77 from the current position of 45. what this means is that there's going to be
a lot of buying and selling it's going to be very interesting to see the effect it's going to have
on these underlying stocks because whenever an etf holds it this was the whole reason why tesla had
such a nice boost after it was included in the s p 500 because there are requirements for etfs that
follow the s p 500 to own a specific weighting of tesla so there was a big buying pressure there and
it's going to be very interesting to see what gets removed and what gets added and in my mind
having more individual stocks in the etf that's extremely volatile like the renewable energy space
makes sense to me but it's going to be very interesting to see the type of effect it has
on the overall sector and there hasn't been a an official date there's a semi-annual meeting
in April that'll kind of determine what's going to happen when that happens I’ll probably discuss
it on this channel but it is something to watch right now just because the index is
likely going to change and we'll see the type of ripple it has in renewable energy stocks overall
and so I do want to mention that $ICLN (ICLN Stock) doesn't have any EV stocks in it like a
Nio Stock (NIO Stock) or a tesla stock (TSLA Stock) there have been some other renewable
energy etfs that do include those but in my mind I kind of see this as being a positive thing
you could make the argument I have made the argument in the past I believe I made a video
back in December talking about green energy stocks and I did include neo on there because
it's the idea that you're going to be investing in green energy overall but the way that you push
the creation of the energy is you need to have a demand for the energy overall and that's why the
evs have been so exciting and have likely pushed this space up significantly in the past year but
in my mind when I’m buying into an etf like $ICLN (ICLN Stock) I like the idea that these
are companies I don't have a lot of experience with I’d feel way more comfortable just buying
into something like a tesla or a neo on its own because there's so much information out there and
I’d like to have more flexibility of the type of weighting that it has in my overall portfolio so
there could be some arguments that you know $ICLN (ICLN Stock) definitely missed out on some profits
in 2020 because it doesn't include tesla stock or Nio Stock (NIO Stock) if you believe that those
are companies are going to be doing extremely well and pushing the space forward sure you can buy
them on your own but I am kind of happy they're not included in that overall etf because it does
follow a lot of the companies that I probably wouldn't be buying on my own so overall this is
going to be my first discussion about renewable energy stocks overall because I think it's the
most exciting sector to be investing in overall yes you do have the risk of investing in kind of
a speculative type of sector because as of right now green energy is only a fraction of what it's
going to be in the upcoming years because there's a lot of hope and expectations about what's going
to happen in the upcoming years but with the new infrastructure plan that's been released and the
plans of getting the carbon neutral by 2050 and getting to carbon free energy by 2035 and I think
this is the most exciting sector to be a part of and I do have some experience and some expertise
based off of my college education so kind of wanted to talk about that be sure to leave you
guys favorite renewable energy stocks and green energy stocks in the comment section down below
and I’ll be sure to get to them by the end of this month so I do like doing series I did one in
December where I talked about my favorite stocks of each sector and I think it was my favorite
sector overall so I think it deserves a deep dive and all the different options you have out there
and I thought it only made sense to start with my favorite etf for green energy stocks with $ICLN
let me know what you guys thought about ICLN Stock and let me know what you thought about the overall
sector overall thanks for watching I appreciate all support and I will see you in the next video