ISHS GLOBAL CLEAN ENERGY UCITS ETF USD A

Issuer: iShares

Asset Class: Equity

TER: 65bps

Trading Currency: GBP

Pays Income: False

Listing Date: 27 Feb 2025

Ticker: INRA

ISIN: IE000U58J0M1

This fund offers targeted exposure to the global clean energy sector, a theme driven by powerful long-term structural tailwinds. As the world confronts climate change, governments, corporations, and consumers are increasingly shifting away from fossil fuels towards renewable sources like solar, wind, and hydroelectric power. This global energy transition is supported by ambitious regulatory targets, such as the Paris Agreement, and significant public and private investment in sustainable infrastructure. The fund provides a diversified vehicle to invest in the companies poised to benefit from this multi-decade megatrend, capturing the growth potential of a sector critical to a sustainable future.

The investment strategy is comprehensive, encompassing a broad spectrum of companies operating across the clean energy value chain. The portfolio is not limited to just renewable energy producers but also includes firms that develop crucial technologies and manufacture essential equipment, such as wind turbines and solar panels. By investing in companies from both developed and emerging markets, the fund captures opportunities from across the globe, reflecting the worldwide nature of the clean energy movement. This approach provides a holistic exposure to the sector's ecosystem, from established utility providers shifting to green energy to innovative technology firms driving the next wave of efficiency and adoption.

Investing in this theme allows for portfolio alignment with environmental, social, and governance (ESG) principles while seeking to capitalize on a significant growth narrative. It is designed for those looking to participate in the innovation and expansion of the renewable energy industry. However, potential investors should recognize that thematic investments can carry higher volatility compared to broader market indices. The sector's performance can be sensitive to shifts in government policy, fluctuations in energy and raw material prices, and the rapid pace of technological advancements, which represent both opportunities and risks.