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ICLN vs TAN vs PBW
Any opinions on which has better LT prospects? I'm a big fan of global renewable energy and will start small with an allocation to one of these funds. Any pointers or insights into any of these funds that will help me choose is most appreciated.
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Have you checked the expense ratio difference among these ETFs? They are all passive but ICLN has a much lower expense ratio than the other two: here's the quick comparison on the funds if you haven't seen this already. ICLN may be a popular fund in the space because of its lower fee, but if you dig into the holdings of each of the funds, you'll start seeing some big differences that also explain the return difference as well: ICLN fact sheet is here PBW fact sheet is here TAN fact sheet is here
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@Jess225 I'd recommend looking into the holdings of each as well. How do you feel about US focus vs. more global holdings? How comfortable are you with fewer holdings? When you say LT prospects do you mean some target return? For example, PBW is more diverse, but US focused, and holdings weights are spread out compared to ICLN which has fewer holdings, more globally diverse and top holdings are weighted heavily. Look at the return differentials and determine the drivers there (PBW for example has greater EV weight than ICLN, so do you really want more TSLA or NIO in your portfolio). After you've done your research, I would recommend you list out what your priorities are from most important on down to help you decide. For example 1. 3 or 5 year return, 2. investment focus, 3. global vs. US focus, 4. expense ratio. Ultimately it's up to you. But know what you own and what your investment priorities are.
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@Jess225 Thanks for the quick links here to their fact sheets. @Guy751 great tips on how to think about it! Are any of you invested in this space?
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Def look at the holdings to help inform your decision. PBW only includes publicly traded US companies whereas ICLN and TAN are global in nature. PBW is well diversified across sectors too. PBW may do well with the current government supportive of big investment into green energy. But if you can't decide, diversify your green exposure by investing in two of the three you've listed?
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@Andy497 May try out two or all of them in fact. But as you all said, I need to look closer at the holdings which I will do!
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