“Our analysis looks solely at the risks that a business poses to the society and environment in which operates, in absolute terms,” Wood Uribe said.
The Global X clean-energy ETFs are passively managed, said Madeline Ruid, an analyst at New York-based Global X Management Co. The largest holdings of the firm’s hydrogen fund, launched last July, were recently NEL ASA, Bloom Energy Corp. and Plug Power Inc., which tracks the Solactive Global Hydrogen Index.
As for the worst performers, Util’s research pegged three utilities ETFs as the lowest scoring, based on a review of the funds’ holdings relative to SDG 13. Most utilities burn fossil fuels to generate electricity, and even those that are attempting a green transition still get the majority of their revenue from traditional power generation, Wood Uribe said.
The three funds are Invesco S&P 500 Equal Weight Utilities (RYU), John Hancock Multifactor Utilities (JHMU) and ProShares Ultra Utilities (UPW). Not one of them had more than 5% of their funds’ assets aligned positively with SDG 13, Util said.
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This article was provided by Bloomberg News.