Invesco WilderHill Clean Energy ETF

PBW

Market cap $546M

China's rare earth export curbs threaten the clean energy supply chain, but global exposure helps ETFs like PBW, FRNW, and ICLN stay resilient.

Clean energy rallies on several factors, with PBW ETF up 7% on Oct. 13, surging 126% in six months as AI demand & policy clarity boost renewables.

Clean energy ETFs -ICLN, QCLN, PBW, ACES and FRNW - surge as global investment hits records, with momentum set to test U.S. policy headwinds in Q4.

Trump's sharp criticism of green energy rattles investors, sending U.S. clean energy ETFs like ICLN, QCLN, ACES, TAN and PBW lower.

Clean Energy ETF PBW hits a 52-week high, surging about 121% from its low as industry momentum and easier Fed policy fuel gains.

Invesco WilderHill Clean Energy ETF has surged ~42% YTD, outperforming both iShares Global Clean Energy ETF and the S&P 500. PBW's outperformance is attributed to its diversified holdings across the high-performing technology as well as industrials and consumer discretionary, unlike ICLN's utility-heavy concentration. But it's hard to make a Buy case for PBW looking ahead, owing to the composition of its holdings and their prospects based on market multiples.

A Fed rate cut today could ease financing for renewables, boosting U.S.-focused clean energy ETFs that are already gaining momentum.

PBW, QCLN, CNRG, and HAIL have been hovering around 52-week highs as clean energy regulations, Ford's EV plan, Powell's rate cut hints and Tesla rally sparked momentum.

It may not have been on your investment bingo card, but one of the surprising outperforming investment themes this year has been clean energy. One catalyst has been the growing electricity demands related to the rise of AI.

I rate PBW a hold due to its high volatility, small cap focus, and lackluster long-term returns despite strong clean energy tailwinds. The ETF offers exposure to innovative clean energy trends—especially batteries and grid optimization—but its small cap tilt increases risk and requires careful entry timing. PBW's expense ratio is high, most holdings are unprofitable, and its dividend is value-destructive; I recommend waiting for a lower P/B ratio before buying.