(CNRG) Kensho Clean Power - Overview

The SPDR® Kensho Clean Power ETF (CNRG) is a U.S.-based equity-energy fund that aims to track an index of companies developing technologies that enable clean-power generation. Under typical market conditions the ETF allocates at least 80 % of its assets to the index constituents, but it may also hold non-index equities, cash, or money-market instruments such as repurchase agreements. Because the fund is classified as “non-diversified,” concentration risk can be higher than in broadly diversified ETFs.

Key sector drivers that could influence CNRG’s performance include: (1) the rapid expansion of renewable-energy capacity, which the International Renewable Energy Agency (IRENA) estimates will grow at roughly 10 % YoY through 2030; (2) continued fiscal support from the U.S. Inflation Reduction Act and the EU’s “Fit for 55” package, both of which are expected to boost clean-energy capital spending by over $1 trillion globally in the next five years; and (3) the declining levelized cost of electricity (LCOE) for solar and wind, which has fallen by more than 70 % and 40 % respectively since 2010, enhancing profitability for firms in the index.

Investors should be aware that the fund’s non-diversified status may amplify exposure to a handful of high-growth firms, making it more sensitive to company-specific news or regulatory shifts. Additionally, the allowance to hold cash and money-market assets can introduce a modest drag on returns during strong equity rallies.

For a deeper dive into the fund’s holdings, risk profile, and valuation metrics, you may find ValueRay’s analytics worth a look.