Broader markets are close to all-time peaks. Year-to-date, the Dow Jones Industrial Average, the S&P 500 and the NASDAQ 100 are more than 11.5%, 11.6% and 8.2% up respectively.
Nevertheless, not all sectors have demonstrated a substantial performance so far this year. Some of the exchange-traded funds (ETF) made great results, while others lost positions in the first quarter. Let’s take a look at a fund that has been pressured in the last weeks, but has a great potential to bounce back. Moreover, its fortune would undoubtedly fare better during the rest of the quarter.
VanEck Vectors Low Carbon Energy ETF
- Current Price: $159.77
- 52-Week Range: $65.06 – $195.55
- Dividend Yield: 0.06%
- Expense Ratio: 0.62% per year
Last year was a great year for shares of electric vehicles and alternative-energy companies. Indeed, green energy keeps attracting more and more consumers, therefore, investors’ interest towards these stocks grew substantially. In addition, the U.S. president, Joe Biden made it clear that clean energy is extremely important to the country and that his team will support this sector.
Among the funds that did well was the VanEck Vectors Low Carbon Energy ETF (NYSE:SMOG). In the past 52 weeks, it got 141% back and hit a record-high on January 25th. However, since then, the fund has lost around 20% of its value. Year-to-date, the fund is trading 4% down.
The fund invests in companies that work on alternative energy, including biofuels (such as ethanol), wind, solar, hydro and geothermal sources. It also acquires shares of firms that work on EVs, lithium-ion batteries, waste-to-energy production, as well as smart grid technologies.
SMOG has 65 holdings and tracks the MVIS Global Low Carbon Energy Index returns, which is rebalanced quarterly. Since its inception in May 2007, the fund has reached $427 million in net assets.