By: Ron Pernick
Quarterly overview of stock index performance and the top trends impacting the state of clean tech.
As we reported last quarter, Covid-19 and the resulting pandemic brought the stock market – and the entire global economy – to its knees (with all Nasdaq-Clean Edge stock indexes down double digits during the first quarter). What a difference a quarter makes. During Q2, while the coronavirus continued to wreak havoc on the health of individuals and economies, we saw a significant stock-market market rebound, with U.S.-listed clean energy (spanning renewables, electrified transportation, storage, energy efficiency, and power conversion), weathering the impacts of coronavirus better than most other sectors – increasing nearly 50%.
Nasdaq-Clean Edge indexes, on a total return basis, were all up, with CELS (U.S. clean energy) increasing 47.90%, QGRD (global smart grid & grid infrastructure) up 27.94%, GWE (global wind) increasing 18.17%, and HHO (U.S. water) up 16.88%. During the same time frame, the S&P 500 index increased 20.54% and The IXE (Energy Select) was up 32.14%.
Q2 2020 Performance
As of June 30, 2020 | CELS (U.S. Clean Energy) | GWE (Global Wind) | HHO (U.S. Water) | QGRD (Global Grid) | S&P 500 | IXE (Energy Select) |
|---|---|---|---|---|---|---|
Q2 (Total Return) | 47.90% | 18.17% | 16.88% | 27.94% | 20.54% | 32.14% |
YTD (Total Return) | 19.79% | -0.90% | -6.26% | 0.66% | -3.08% | -34.91% |
12-Month (Total Return) | 41.81% | 10.04% | 3.10% | 15.29% | 7.51% | -35.52% |
While fossil fuel energy (IXE) did improve during Q2, year to date (YTD) IXE didn’t fare nearly as well, declining 34.91%. Over the same time frame, on a total return basis, CELS was up 19.79% and QGRD increased 0.66% while GWE declined 0.90% and HHO was down 6.26%.
YTD Performance (through June 30, 2020)
Over the past 12 months (total return basis through the end of June), all of our Nasdaq-Clean Edge indexes outperformed the IXE., and three of them beat the S&P 500. CELS was the top Nasdaq-Clean Edge index performer, rising 41.81%, followed by QGRD up 15.29%, GWE up 10.04%, and HHO up 3.10%. During the same time frame, the S&P 500 increased 7.51% and IXE was down 35.52%.
12-Month Performance (through June 30, 2020)
A number of factors and trends are impacting the growth of clean energy, including the death of coal in the U.S. and Europe; the electrification of transportation and storage; overwhelming public support for renewable energy over fossil fuels; and unwavering corporate and governmental commitments to a low-carbon/zero-carbon future in the face of Covid-19 (see top tweets below).
First Trust ETFs tracking Nasdaq Clean Edge indexes equaled more than $900 million in assets under management as of July 7, 2020.
Winners and Losers (Index Constituents Ranked by Price Return)
Below is a list of the top 10 best and worst constituent performers across all Clean Edge Nasdaq indexes (CELS, QGRD, HHO, and GWE).
Best and Worst Constituents (Q2 2020)
Winners | Losers | ||
|---|---|---|---|
Dongkuk Structures & Construction Co., Ltd. | 222.77% | General Electric Company | -13.98% |
NIO Inc. | 177.70% | Aegion Corporation | -11.49% |
Plug Power Inc. | 131.92% | Belden Inc. | -9.78% |
Vivint Solar, Inc. | 126.54% | Acciona S.A. | -6.87% |
Bloom Energy Corporation | 108.03% | Landis+Gyr Group AG | -6.62% |
Tesla, Inc. | 106.07% | Ormat Technologies, Inc. | -6.16% |
Ballard Power Systems Inc. | 102.82% | Nissin Electric Co., Ltd. | -6.16% |
Forterra, Inc. | 86.62% | Mitsubishi Heavy Industries, Ltd. | -5.43% |
SolarEdge Technologies, Inc. | 69.49% | California Water Service Group | -5.21% |
Advanced Drainage Systems, Inc. | 67.80% | Watts Water Technologies, Inc. | -4.31% |
Q2 TOP 20 STORIES: SOLAR MODULES DROP FROM $100 TO $0.23 PER WATT, MICHAEL MOORE’S DISASTEROUS DOC, THE DEATH OF COAL, & MORE
Below are the top tweets (and links to source material) from Clean Edge during Q2 2020 based on overall engagement.
- @drvox nails it again: As Trump and McConnell mock #cleanenergy, the industry could soon lose a 1/2 million jobs. "In a better world run by people of greater wisdom, the US would... (forward) ...a cleaner, more just and sustainable trajectory. https://t.co/6IdACUW4px
- Don't miss the latest PPT presentation from @JeremyLeggett and @solarcentury on #climatechange, #coronavirus, and rebuilding the global economy! #EnergyTransition https://t.co/XKpnYHH15J
- Great piece by @MikeGrunwald: "What Covid Is Exposing About the Climate Movement." Bottom Line: #ClimateAction is required both at the governmental and industrial scale, as well as at the individual level. It all matters! https://t.co/AFEIK5aHBg via @politico
- You say you want a revolution??? See the latest from @BloombergNEF and Paul Maycock data showing crystalline silicon photovoltaic module cost per watt, dropping from $100 to $0.23 from 1975 to 2019. #EnergyTransition #solar https://t.co/bNbgaFYWaD
- @lyft Joins @ClimateGroup's #EV100, Committing to 100% #ElectricVehicles by 2030 https://t.co/P5R4E3Xj9A
- #Conservatives and #liberals want a #RenewableEnergy future, but for different reasons. #Democrats prioritize curbing #ClimateChange while #Republicans are motivated by reducing energy costs. Either way, both overwhelmingly support a #cleanenergy future. https://t.co/XCi1wCOLyy
- On @MMFlint's new film #PlanetoftheHumans, @ewesoff, editor @pvmagazine, sums it up perfectly: "It’s difficult to take the film seriously... [when] the solar industry it examines, whether through incompetence or venality, is from somewhere back in 2009." https://t.co/mj6VyiCs6Z
- More on the #DeathofCoal / #EndofCoal: In a First, #RenewableEnergy Is Poised to Eclipse #Coal in U.S. https://t.co/tBHL0jCu4U #EnergyTransition
- Clean Edge Announces Changes to its Family of Clean Energy, Smart Grid, and Water Indexes - https://t.co/dcCI7ZGVw4
- Brookfield Renewable Partners (NYSE:BEP) first-quarter earnings show little impact so far from global pandemic. How will other #renewableenergy companies fare? https://t.co/dC4vN8P9Y5
- Spain is seeking to pass a law setting stronger #climate targets as part of a drive to achieve #carbon neutrality by 2050 -- targeting 70% #RenewableEnergy on the grid by 2030. Expect similar actions at the national and state level for #green #stimulus https://t.co/v42BirHIez
- I think this is misguided on @Greenpeace's part: Amazon Renaming KeyArena to "Climate Pledge Arena Meaningless PR Stunt." I commend @amazon for buying the rights and then not even putting their own name on the world's first #NetZero #carbon certified arena https://t.co/JOc1KguXG3
- Kudos to @SCE. California utility signs seven #energystorage contracts totaling 770 MW (with aggressive target to bring assets online in 2021). Dwarfs all the storage purchased last year across the entire country. #dispatchable #solar #wind https://t.co/9gDUYthNEQ
- A roundup of #VentureCapital funding in #cleanenergy: Take a look at solid state circuit breaker company @AtomPowerInc, next-generation electric panel maker Span, #graphene lithium battery developer Nanotech Energy, and others. https://t.co/GMzzcuLBKw
- This battle is just beginning! State and NGO groups sue @FERC over PJM MOPR decision as Neil @FERChatterjee rejects cost, #renewable concerns. "If the courts don't overturn this, states are going to leave the power markets," says Tom Rutigliano, @NRDC https://t.co/GIs3109n6f
- According to Survey by @MorningConsult, Ahead of Stimulus Talks, Voters Back Relief for #Renewables More Than for #Oil and #Gas https://t.co/WQ9yVprIiV
- Renewable Hydrogen Sneak Attack On “Toughest Third” Of Global CO2 Emissions https://t.co/7lsZzwX2lT #greenhydrogen #renewable #hydrogen
- Dominion Energy Plans to Launch an #Offshore #Wind Empire: The Company is just Weeks from Installing the Second U.S. Offshore Wind Project, and it’s Happening During a Pandemic. @DominionEnergy https://t.co/MBVIGQzFRW
- Some good (but not unexpected) news at the end of a very dark and difficult week for our nation: #renewables top #coal in the US for the first time in more than 130 years. Here's to the #EnergyTransition, the #greatreset, and better days ahead. https://t.co/GOe02ZcF15
- Breaking News: @amazon to buy self-driving technology company @zoox #AutonomousVehicles https://t.co/Bqpg0JaOYo
Disclaimer:
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or an overall investment strategy. Clean Edge, Inc., does not make any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund.