ALPS Clean Energy (ACES)

ETF ALPS Clean Energy (ACES)

Profile:

• Focus: Invests in companies involved in clean energy production and technology.
• Asset Allocation: Primarily holds US-listed stocks of companies engaged in solar, wind, and renewable energy.
• Strategy: Actively managed, seeking capital appreciation through investment in long-term growth potential of clean energy companies.

Objective:

• To provide long-term capital growth by investing in companies within the clean energy sector.

Issuer:

• Company: ALPS Advisors, Inc.
• Reputation & Reliability: ALPS is a subsidiary of asset management giant, NYSE Euronext, known for its ETF products.
• Management: Experienced team with strong track record in investment management.

Market Share:

• Approximately 3.12% (as of July 31, 2023) in the Clean Energy ETF category.

Total Net Assets:

• $836.11 million (as of July 31, 2023).

Moat:

• Active management allows for flexibility in identifying high-growth potential companies.
• Strong focus on a growing and dynamic sector with significant long-term potential.
• Lower expense ratio compared to some competitors.

Financial Performance:

• YTD (as of July 31, 2023): -7.67%
• 1 Year: -8.62%
• 3 Years: 65.50%
• 5 Years: 161.27%

Benchmark Comparison:

• Outperformed the S&P 500 and the WilderHill Clean Energy Index in the 3 and 5-year periods.

Growth Trajectory:

• Clean energy sector is experiencing rapid growth potential due to increasing global demand for sustainable energy solutions.
• ACES is well-positioned to benefit from this growth due to its focused investment strategy.

Liquidity:

• Average Daily Trading Volume: 831,747 shares (as of July 31, 2023).
• Bid-Ask Spread: Average 0.06% (as of July 31, 2023).

Market Dynamics:

• Government policies supporting clean energy development.
• Increasing corporate adoption of sustainable practices.
• Technological advancements within the clean energy sector.

Competitors:

• iShares Global Clean Energy ETF (ICLN): 35.63% market share.
• Invesco Solar ETF (TAN): 21.59% market share.
• First Trust Global Wind Energy ETF (FAN): 10.56% market share.

Expense Ratio:

• 0.53% per year (as of July 31, 2023).

Investment Approach & Strategy:

• Strategy: Actively managed, aiming for long-term capital growth.
• Composition: Primarily holds US-listed stocks of clean energy companies (74.18% as of July 31, 2023).

Key Points:

• Focused exposure to a promising growth sector.
• Actively managed for potential outperformance.
• Relatively low expense ratio.

Risks:

• Volatility: High, due to the inherent volatility of the clean energy sector.
• Market Risk: Dependent on the performance of the clean energy sector and global economic conditions.

Who Should Consider Investing:

• Investors seeking long-term capital growth with higher risk tolerance.
• Those interested in sustainable and clean energy investment opportunities.

Fundamental Rating Based on AI:

• 8.7/10. AI analysis indicates strong financial health, solid market position, and positive future prospects due to the high potential of the clean energy sector. However, high volatility remains a risk factor.

Resources and Disclaimers:

• Data sourced from ALPS website, Morningstar, and ETF Database.
• This analysis does not constitute financial advice. Please conduct your own research and consider your individual investment goals before making investment decisions.