(ICLN) iShares Global Clean Energy - Ratings and Ratios

The iShares Global Clean Energy ETF (NASDAQ: ICLN) is a financial product designed to provide exposure to companies involved in the clean energy sector. The fund tracks an index composed of approximately 100 firms engaged in renewable energy production, energy efficiency, and other clean energy-related activities. This includes businesses operating in solar, wind, hydroelectric power, and other alternative energy sources.

From an investment perspective, the ETF is structured to allocate at least 80% of its assets to the securities included in its underlying index. This ensures that the fund’s holdings are closely aligned with the performance of the clean energy sector. The remaining 20% of the portfolio may be invested in derivatives such as futures, options, and swap contracts, as well as cash and cash equivalents. This flexibility allows the fund to hedge against potential losses or to take advantage of market opportunities.

With an assets under management (AUM) of over $1.3 billion, ICLN is a significant player in the clean energy ETF space. The fund is classified as non-diversified, meaning it can hold a higher concentration of its assets in a smaller number of securities compared to a diversified fund. This approach can lead to higher volatility but also offers the potential for greater returns if the clean energy sector performs well. The fund’s expense ratio is 0.40%, which is relatively low compared to actively managed funds but higher than some passively managed ETFs.

For investors and fund managers, it’s important to note that ICLN provides exposure to a global portfolio of clean energy companies. This includes firms based in the United States, Europe, and other regions. The fund’s top holdings typically include major renewable energy providers and companies involved in energy storage and efficiency technologies. While the clean energy sector has shown strong growth in recent years, it remains sensitive to government policies, technological advancements, and broader market conditions.