
The
fund was added to my green portfolio last March, shortly after I put my index
funds under the spotlight and decided to move my portfolio away from fossil
fuels. My initial purchase price was 433p and later in the year I topped up my
holding at 490p and topped up a third time last week at 435p. The shares are
held in my SIPP drawdown and also my ISA with AJ Bell Youinvest.
The
ETF fund holdings include :
Enphase (6.6%) a global energy
technology company and the worlds leading supplier of solar microinverters. These connect solar generation, storage and management on one intelligent
platform. The shares are listed on the US Nasdaq exchange and have grown
quickly over the past year from $9 to currently $32.
Solaredge Technologies (5.5%) another Nasdaq-listed
US company providing inverter solutions across all segments of the solar PV
market. Over the past year the stock has risen from $38 to currently $79.
Vestas Wind (6.5%) one I also hold as a
stand-alone in my portfolio
Siemens Gamesa (7.4%) a Spanish-based
renewable engineering company involved in the manufacturing of wind turbines
and related servicing. Their products have been installed in over 90 countries all
around the world with a current combined capacity of 100GW.
Returns
The
fund had a good run over the past year reaching a high point of 620p in mid
February but was obviously affected by the global sell-off and the share price
dropped back around 30%. At the current price of 439p my total return has been -5.0%
for the year including dividends of 8.2p
which is a yield of just below 2.0% and subject to exchange fluctuations.
The
global renewable energy sector is likely to see continued growth over the
coming decade as the world attempts to address the climate crisis and move to
curb carbon emissions. We are weaning our economies off fossil fuels and the
transition to clean energy such as wind, solar and wave power is well underway
and likely to accelerate. As can be seen from the chart, the global renewables
represented by INRG has performed much better than the oil sector represented
by RDSB.
I have
taken a punt on a few individual companies such as Orsted, Ceres Power and
Vestas Wind for example but a diversified approach with the likes of this ETF
probably makes more sense so I am happy to continue holding these shares. They
currently make up around 9% of my green portfolio.
Once
we get past the coronavirus panic, I am hoping this ETF will bounce back but
for the time being I think it's just a case of sit tight and try not to panic!
As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation - always DYOR!