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Investors bet that Joe Biden will win the presidential election buying shares for clean energy, sending some companies’ share prices soaring.
The WilderHill Clean Energy Index, a compilation of green power companies listed on U.S. exchanges, rose to a more than nine-year high on Wednesday. It has risen 33% since early July. Their largest companies include First Solar Inc.
and Tesla Inc.
“A Biden victory would give great impetus to the transition” to a lower carbon economy, said Simon Webber, a portfolio manager at Schroders for Global Equities. “The growth prospects for electric cars, renewable energy, hydrogen power, battery storage and many more industries would be turbo-charged.”
The iShares Global Clean Energy ETF,
which tracks S & P Global’s index of clean energy companies around the world, has risen by almost 30% in the same time frame. The fund’s assets under management swelled to $ 1.2 billion from $ 431 million at the beginning of the year. Its largest holdings include SolarEdge Technologies Inc.,
Sunrun Inc.
and Plug Power Inc.
“This has been going on since the beginning of the summer, because more of the market is asking for attention before the election,” said Max Anderl, head of concentrated alpha equity at UBS Asset Management. “It’s certainly already reflected in stock market prices.”
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