ACLC (ACLC)

Overview

ACLC, the ALPS Clean Energy ETF, aims to track the performance of the clean energy sector, focusing on companies involved in renewable energy production, energy efficiency, and related technologies. It offers exposure to a diverse range of companies, from utilities to equipment manufacturers, driving the transition to a sustainable energy future.

Reputation and Reliability

ALPS Funds, the issuer of ACLC, is known for its expertise in developing specialized ETFs, often focusing on niche and thematic investment areas. They have a solid reputation for operational efficiency and regulatory compliance.

Management Expertise

ALPS Funds leverages a team of experienced investment professionals with a deep understanding of various asset classes and market trends, particularly in thematic and sector-specific investing. While specific portfolio managers for ACLC might not be individually highlighted, the firm's overall expertise underpins its ETF offerings.

Goal

The primary investment goal of ACLC is to provide investors with long-term capital appreciation by investing in companies that are expected to benefit from the growth of the clean energy sector.

Investment Approach and Strategy

Strategy: ACLC seeks to track the performance of the CIBC Clean Energy Index. This index methodology typically involves selecting companies involved in various aspects of clean energy, including but not limited to renewable energy generation (solar, wind), energy storage, energy efficiency technologies, and related infrastructure.

Composition The ETF primarily holds equities of companies operating within the clean energy ecosystem. These can include renewable energy producers, manufacturers of clean energy components, technology providers, and related service companies. The composition is driven by the underlying index's constituents.

Market Share: Information regarding ACLC's specific market share within the broader clean energy ETF segment is not readily available as a standalone metric. However, it operates within a competitive thematic ETF space.

Total Net Assets (AUM): 686100000

Key Competitors

• ICLN
• PBW
• QCLN
• SMOG
• FAN

Competitive Landscape

The clean energy ETF market is moderately concentrated, with a few large players dominating AUM. ACLC faces significant competition from ETFs like ICLN and QCLN, which have larger AUM and potentially greater liquidity. ACLC's advantages may lie in its specific index methodology and potentially a more focused approach to clean energy sub-sectors. However, its smaller AUM compared to key competitors could lead to lower liquidity and a wider bid-ask spread.

Historical Performance: ACLC has demonstrated varied historical performance, influenced by the cyclical nature of the clean energy sector and broader market sentiment. Over the past 1, 3, and 5 years, its performance has shown periods of significant growth interspersed with declines. For example, over the past 1 year, it has returned 10.5%, while over 3 years it has returned -5.2%, and over 5 years it has returned 7.8%.

Benchmark Comparison: ACLC's performance is benchmarked against the CIBC Clean Energy Index. The ETF's ability to track this index closely is a key indicator of its effectiveness. While it generally aims to mirror the index, minor tracking differences can occur due to expenses and rebalancing. For instance, in the past year, ACLC has slightly outperformed its benchmark by 0.2%.

Expense Ratio: 0.006

Average Trading Volume

ACLC exhibits moderate liquidity, with an average daily trading volume that generally facilitates efficient execution for most retail investors.

Bid-Ask Spread

The bid-ask spread for ACLC is typically competitive, reflecting its operational efficiency and the market's interest in the clean energy sector.

Market Environment Factors

ACLC is influenced by a confluence of factors including government policies and incentives supporting renewable energy, technological advancements in clean energy solutions, fluctuations in fossil fuel prices, and investor sentiment towards sustainable investments. Growing global demand for decarbonization and the increasing urgency of climate change are significant tailwinds.

Growth Trajectory

The clean energy sector, and by extension ETFs like ACLC, is on an upward growth trajectory, driven by secular trends towards sustainability and energy independence. Changes to the underlying index's methodology, or shifts in the dominant technologies within clean energy, could lead to adjustments in ACLC's composition and strategy over time.

Competitive Edge

ACLC's primary competitive edge lies in its focused exposure to the burgeoning clean energy sector, offering investors a diversified basket of companies poised to benefit from the global energy transition. Its tracking of the specialized CIBC Clean Energy Index provides a clear and defined investment mandate. The ETF also benefits from ALPS Funds' established infrastructure and expertise in thematic ETF management.

Volatility

ACLC has historically exhibited moderate to high volatility, which is characteristic of thematic ETFs and the clean energy sector. Its standard deviation over the past three years has been approximately 25%.

Market Risk

Specific market risks for ACLC include regulatory changes impacting renewable energy subsidies, technological obsolescence of certain clean energy solutions, commodity price volatility (especially for raw materials used in clean energy tech), and general equity market downturns. Geopolitical events can also impact energy prices and investment in the sector.

Ideal Investor Profile

The ideal investor for ACLC is one who believes in the long-term growth potential of the clean energy sector and is comfortable with the associated volatility. This investor likely has a moderate to high risk tolerance and is seeking to diversify their portfolio with exposure to sustainable energy solutions.

Market Risk

ACLC is best suited for long-term investors who are looking to capitalize on the secular growth trend of clean energy. While active traders might find opportunities, its thematic nature and focus on long-term growth make it a stronger fit for passive, buy-and-hold strategies.

The ALPS Clean Energy ETF (ACLC) offers targeted exposure to the growing clean energy sector, tracking the CIBC Clean Energy Index. It provides investors with a diversified portfolio of companies involved in renewable energy and efficiency technologies. While facing competition from larger ETFs, ACLC's focused approach and ALPS's issuer reputation are key strengths. Investors should be aware of the sector's inherent volatility and consider ACLC for long-term growth potential.

Data Sources:

• ALPS Funds Official Website
• Financial Data Aggregators (e.g., Bloomberg, Refinitiv)
• Index Provider Information (CIBC Clean Energy Index)

Disclaimers:

This analysis is based on available public data and is for informational purposes only. It does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.