By: Ron Pernick
Quarterly overview of stock index performance and the top trends impacting the state of clean tech.
2019 was a strong year for Nasdaq-Clean Edge stock indexes, with all four indexes out-performing their benchmarks. On a total return basis for 2019, QGRD (global smart grid & grid infrastructure) was up 43.90%, CELS (U.S. clean energy) increased 42.67%, HHO (U.S. water) was up 37.93%, and GWE (global wind) increased 31.90%, all beating out the S&P 500’s 31.49% increase and IXE’s (energy select sector index) 12.09% increase during the same period.
During Q4 2019 (on a total return basis), CELS was the top Nasdaq-Clean Edge index performer, rising 16.61%, followed by GWE up 12.33%, QGRD up 11.21%, and HHO up 7.01%. During the same time frame, the S&P 500 increased 9.07% and IXE was up just 5.64%.
As of December 31, 2019 | CELS (U.S. Clean Energy) | GWE (Global Wind) | HHO (U.S. Water) | QGRD (Global Grid) | S&P 500 | IXE (Energy Select) |
|---|---|---|---|---|---|---|
Q4 (Total Return) | 16.61% | 12.33% | 7.01% | 11.21% | 9.07% | 5.64% |
2019 (Total Return) | 42.67% | 31.90% | 37.93% | 43.90% | 31.49% | 12.09% |
First Trust ETFs tracking Nasdaq Clean Edge indexes equaled more than $800 million in assets under management at the end of December 2019.
Best and Worst Performers (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 (2019)
Best | Worst | ||
|---|---|---|---|
Enphase Energy Inc. | 452.4% | Livent Corporation | -38.0% |
Ballard Power Systems Inc. | 200.4% | NIO Inc. | -36.9% |
SolarEdge Technologies Inc. | 170.9% | Veoneer, Inc. | -33.7% |
Plug Power, Inc. | 154.8% | Sociedad Quimica y Minera de Chile SA | -30.3% |
Eolus Vind AB | 128.9% | American Superconductor Corporation | -29.6% |
JinkoSolar Holding Company Limited | 127.4% | Bloom Energy Corporation | -25.2% |
Daqo New Energy Corporation | 118.8% | China High Speed Transmission Equipment Group Co., Ltd | -24.8% |
SMA Solar Technology AG | 103.7% | TPI Composites, Inc. | -24.7% |
Evoqua Water Technologies Corp | 97.4% | BYD Company Limited | -21.8% |
STMicroelectronics N.V. | 93.9% | Primo Water Corporation | -19.9% |
Best and Worst Constituents (Q4 2019)
Best | Worst | ||
|---|---|---|---|
NIO Inc. | 157.7% | SunPower Corporation | -28.9% |
Bloom Energy Corporation | 129.8% | Sunrun Inc. | -17.3% |
Renewable Energy Group, Inc. | 79.6% | TerraForm Power, Inc. | -15.6% |
Tesla, Inc. | 73.7% | Hexcel Corporation | -10.7% |
Vicor Corporation | 58.3% | Willdan Group, Inc. | -9.4% |
JinkoSolar Holding Company Limited | 41.0% | Primo Water Corporation | -8.6% |
AquaVenture Holdings Limited | 39.6% | Toray Industries, Inc. | -8.1% |
STMicroelectronics N.V. | 39.1% | International Business Machines Corporation | -7.8% |
SMA Solar Technology AG | 36.7% | Johnson Controls International Plc | -7.2% |
NVIDIA Corporation | 35.2% | Cree, Inc. | -5.8% |
LONG-SHORT STRATEGY CONTINUES TO BEAT OIL & GAS
The Energy Transition Long Short (ETLS) strategy continued to outperform its benchmark IXE index during both Q4 and the full year. During 2019, the strategy beat the IXE by more than 3X. Clean Edge partnered with FFI and Alpha Vee Solutions to create the ETLS, a rules-based alternative index strategy, to benchmark and capture the potential upside of a transition to a low-carbon economy. The strategy is long clean energy (from Clean Edge’s universe of clean energy companies) and short reserve-owning fossil fuel companies (selected from FFI's Carbon Underground 200 list using metrics that gauge a company’s exposure to stranded asset risk). Long and short positions are adjusted dynamically using Alpha Vee’s proprietary quality, value, and momentum factors.
As of December 31, 2019 | ETLS | IXE |
|---|---|---|
Q4 (Total Return) | 12.41% | 5.64% |
2019 (Total Return) | 41.76% | 12.09% |
Q4 2019 TOP 15 STORIES: CIRCULAR ECONOMY, ELECTRIC AVIATION, CYBERTRUCK, AND MORE
Here are the top tweets (and links to source material) from Clean Edge during Q4 2019 based on overall engagement (not including tweets about or from our gridCONNEXT conference).
- Read this Now! Excellent report on the Circular Economy from the Ellen MacArthur Foundation and Material Economics. @circulareconomy #circulareconomy Anyone working on #climate #innovation should read this report. https://t.co/9vsILXuSxY
- Behind Harbour Air's bid to become the world's first fossil fuel-free airline #ElectricVehicles #electric #airplane @HarbourAirLtd @MagniX @EviationAero Check it out: https://t.co/N8Zf6dpZVT
- Indiana Sen. Mike Braun @SenatorBraun (R); Delaware Sen. Chris Coons @ChrisCoons (D) are introducing the first-ever bipartisan Senate Climate Solutions Caucus #ClimateCrisis https://t.co/XzMYKGtcLb
- Broken windows aside... what do folks think of the look of the new @telsa #Cybertruck design? Way too edgy? The perfect antidote to boring old traditional #pickup #trucks? https://t.co/4aHwNxK76B
- Wow! 30,000,000 panels! FPL (@insideFPL) in collaboration with Southern Alliance for Clean Energy (@cleanenergyorg), @votesolar, and @Walmart has officially filed a settlement to establish the nation’s largest community solar program (30M panels by 2030) https://t.co/ld0svPUvum
- More offshore U.S. wind activity: @Shell, @EdpRenewables and @Orsted line up for Connecticut #offshore #windpower https://t.co/T8K1im9Br7
- Emergency Response Plan template released by ESA @storage_ESA. This type of standardization of processes is a great start at ensuring safe operations of corporate #energy #storage facilities. https://t.co/vMmATLAPiI
- What you need to know about @SunPower's split into two companies -- one focused on North American #cleanenergy services and installations and the other on Asian #solar #photovoltaic #manufacturing #stocks #SPWR #Maxeon https://t.co/vSW3k20J8x
- Some positive #EnergyTransition news to be thankful for as we head into the Thanksgiving break: #coal to get toppled by #solar, #wind and other #renewables in 2021 https://t.co/IloXBz8Zxa
- It's out! Check out the most recent Levelized Cost of Energy analysis of #RenewableEnergy from @Lazard. #Solar and #Wind continue to decline in cost to compete with conventional energy sources. https://t.co/neKsavTYeQ
- The Water-Energy Nexus: 17-Year Old Gets @Google Prize For #RenewableEnergy Breakthrough #watergy #solar #water #filtration https://t.co/WlqL7yrDto
- One of the world’s biggest #renewableenergy investors @Macquarie sees a growing opportunity in #offshorewind. Firm says more regulatory certainty from governments and the expansion of new floating tech could drastically broaden investment opportunities. https://t.co/w8I9u3RHet
- Bye bye #gas #peaker pants: New York City to trade gas plant for massive #EnergyStorage battery plant https://t.co/VqejkwHtj2
- Sobering! A Methane Leak, Seen from Space, Proves to Be Far Larger Than Thought #XTOEnergy @exxonmobil #ohio #fracking #naturalgas #blowout https://t.co/wb8O5k1XeC
- Remember Bright Automotive, Coda, Detroit Electric, Fisker Automotive and LeEco? And now @Dyson's EV departure? For every #electricvehicle pure-play winner (@Tesla and perhaps @Rivian) there are a host of failures. https://t.co/pyRpQyZYbF
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.