Quarterly overview of index performance, constituent winners and losers, latest Data Dives, and more
The Nasdaq Clean Edge indexes continued to experience mixed performance through the period ending June 28, 2024. Infrastructure-related grid, water, and income indexes generally performed better over the three periods tracked (quarterly, year-to-date, and 12-months), with some exceptions.
As of June 28, 2024 | CELS™ (U.S. Clean Energy) | GWE™ (Global Wind) | HHO™ (U.S. Water) | QGRD™ (Global Grid) | CELSI™ (Ex-U.S. Clean Energy) | GGINC™ (Global Green Income) | S&P 500 | IXE (Energy Select) |
|---|---|---|---|---|---|---|---|---|
Q2 2024 | -1.48% | 6.34% | -1.89% | 1.30% | -0.85% | 0.96% | 4.28% | -2.62% |
YTD | -19.00% | -0.52% | 5.88% | 11.05% | -2.93% | 2.49% | 15.29% | 10.58% |
12-Month | -33.06% | -4.45% | 14.21% | 11.82% | -5.10% | 2.33% | 24.56% | 16.26% |
Source: Nasdaq, Bloomberg. Performance calculated using total return symbols (CEXX™, GWETR™, HHOTR™, QGDX™, GGINCT™, SPXT, and IXETR, respectively) through 6/28/2024.
On a total return basis, during Q2 2024, the ISE Clean Edge Global Wind Energy™ Index (GWE™) was the top performer (bucking the negative performance trend for clean-energy focused indexes), increasing 6.34%, followed by the Nasdaq OMX Clean Edge Smart Grid Infrastructure™ Index (QGRD™) and the Nasdaq Clean Edge Global Green Income™ Index (GGINC™), which were up 1.30% and 0.96%, respectively. The Nasdaq Clean Edge International Green Energy™ Index (CELSI™) declined 0.85% and the Nasdaq Clean Edge Green Energy™ Index (CELS™) was down 1.48%. The ISE Clean Edge Water™ Index (HHO™), declined 1.89%. The S&P 500 increased 4.28% over the same period while the IXE index was down 2.62%.
Q2 2024 Index Performance (Total Return)
Infrastructure-related indexes had positive results year-to-date (YTD). QGRD (global smart grid and grid infrastructure) was the best performer among Nasdaq Clean Edge indexes, up 11.05%, followed by U.S. water and wastewater infrastructure-focused HHO, up 5.88%. GGINC, which tracks global green income, increased 2.49%.
Our innovation thematics all experienced declines. GWE (global wind) was down 0.52%, while CELSI (ex-U.S. clean energy) and CELS (U.S. clean energy) declined by 2.93% and 19.00%, respectively.
The S&P 500 increased 15.29% over the same period while the IXE (Energy Select) index was up 10.58%. All results are on a total return basis.
YTD Index Performance (Total Return)
Over a 12-month period (through the end of June 28, 2024), on a total return basis, the top Nasdaq Clean Edge index performer was water and wastewater infrastructure-related HHO, which increased 14.21%, followed by QGRD and GGINC, up 11.82% and 2.33% respectively. GWE was down 4.45% and CELSI and CELS declined 5.10% and 33.06%, respectively. Over the same period, the S&P 500 increased 24.56%, and IXE was up 16.26%.
12-Month Index Performance (Total Return)
First Trust ETFs and UCITS tracking Nasdaq Clean Edge indexes equaled more than $4.5 billion in assets under management (as of July 15, 2024, based on FactSet Data).
MONTHLY THEMATIC INDEX RETURNS (%) – 12 MONTH PERIOD
Across all six Nasdaq Clean Edge indexes, monthly over the past 12 months, QGRD, CELS, and GGINC were in the top spot for three months each. CELS and GWE had the highest number of monthly declines over the 12-month period. CELS had both the best and worst monthly performance (up 16.66% in May and down 21.30% in October), reflecting the price volatility occurring in clean-energy sectors. From a comparative perspective, infrastructure and income indexes placed in the top monthly spot almost 60% of the time, while clean energy indexes placed in the bottom slot 10 out of 12 months.
WINNERS AND LOSERS (INDEX CONSTITUENTS RANKED BY PRICE RETURN)
Below is a list of the top 10 best and worst constituent performers across all six Nasdaq Clean Edge Nasdaq indexes during Q2 2024.
Best and Worst Constituents (Q2 2024)
Winners | Losers | ||
|---|---|---|---|
LS Electric Co., Ltd. | 120.51% | Alfen NV | -65.74% |
American Superconductor Corporation | 73.13% | SolarEdge Technologies, Inc. | -64.41% |
HD Hyundai Electric | 69.00% | Aeris Industria e Comercio de Equipamentos para Geracao deEnergia S.A. | -58.96% |
Taihan Electric Wire Co., Ltd. | 55.58% | Meyer Burger Technology AG | -55.90% |
China High Speed Transmission Equipment Group Co., Ltd. | 44.51% | Ebusco Holding N.V. | -54.09% |
Neoen S.A. | 42.42% | SMA Solar Technology AG | -51.11% |
Siemens Energy AG | 41.87% | Abalance Corp. | -45.03% |
Everlight Electronics Co., Ltd. | 40.61% | Varta AG | -41.01% |
Grenergy Renovables S.A | 37.40% | Flat Glass Group Co., Ltd. | -39.39% |
TPI Composites, Inc. | 37.11% | Tianqi Lithium Corp. | -38.31% |
CLEAN EDGE INSIGHTS: OUR LATEST DATA DIVES
High demand for utility-scale and distributed storage, along with the lowest battery prices on record, is causing global energy storage markets to surge. According to Bloomberg NEF, the energy storage market (excluding pumped hydro) exhibited its greatest year-on-year growth, with 45 GW installed globally in 2023 – nearly three times that of 2022. They project installations to expand to 137 GW annually in 2030. The Clean Edge Battery Storage Market Map represents a selection of energy storage companies across a range of sectors, from battery manufacturers and storage integrators to lithium miners and battery recyclers. This is not an exhaustive list but a high-level survey of established and emerging players. [Note: for early-stage players, we looked for at least $10 million in private financing or public funding.]
Global renewable energy deployment continues to expand rapidly, with solar and wind capacity increasing 452% between 2013 and 2023. China now leads the way in total installed solar and wind capacity, with more than 1 TW deployed as of last year. While wind outperformed solar in annual capacity additions globally through 2021, solar is now in the lead. A massive 357 GW of solar was added last year, with more than half of that (216 GW) coming from China. The U.S. is second behind China, with 286 GW of wind and solar capacity deployed as of 2023. The IEA predicts that the world will add 3,700 GW of renewable capacity through 2028 (equal to about 1.5 times the current installed global capacity). As a percentage of electricity generated from solar and wind, nine European nations plus Uruguay ranked in the top 10 in 2022. Denmark was the world leader, generating 60.8% of its total electricity from solar and wind sources in 2022. Two of the top countries in terms of total capacity - Spain and Germany - were also among the leaders in generation at 33.2% and 33.0% respectively, showing that more populous nations are beginning to deploy enough solar and wind to significantly impact the power mix on their electric grids.
Disclaimer:
Nasdaq® is a registered trademark of Nasdaq, Inc. and Clean Edge® is a registered trademark of Clean Edge, Inc. 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 security or an overall investment strategy. Neither Nasdaq, Inc. nor Clean Edge, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed or other publicly listed companies or Nasdaq Clean Edge proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.