skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. CLP.UN: I was wondering if this ETF would be a good way to play the renewable energy space? [International Clean Power Dividend Fund]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I was wondering if this ETF would be a good way to play the renewable energy space? Good dividend, international and spreads out the risk of just owning individual renewable stocks.

This is the best site and thanks for your continued guidance.

Dave.

Asked by David on October 20, 2021
5i Research Answer:

This ETF has good diversification both geographically and across sectors. Just over half of the ETFs assets are in North America, and the remainder are in Europe, the UK, and the rest of the world. Just over half is allocated to utilities, and the remainder to industrials, technology, energy, consumer discretionary, and materials. The top holdings include China Longyuan Power Group, Drax Group, Enel Spa, Energias de Portugal, Iberdrola, National Grid, and others. 

The MER is fairly high at 1.76%, and the fund pays monthly distributions of $0.04167 which represents close to a 5% annual distribution yield at the current share price. This ETF invests mostly in dividend-paying stocks.

If an investor is less focused on earning yield from a clean energy ETF, we prefer the iShares Global Clean Energy ETF (ICLN) which has a lower MER of 0.42%, and also has diversified holdings across geographies and sectors.