This Clean Energy ETF Bundles 38 Stocks Into One High Growth Bet

"ACES is a thematic growth ETF targeting the full clean energy ecosystem across North America. With 32% of the portfolio in Industrials and meaningful exposure to Information Technology, Utilities, Materials, and Consumer Discretionary, this is not a utility income play. It's a bet on structural secular growth across interconnected clean energy subsectors."

"ACES has delivered strong recent performance, returning 38.2% over the past year - well ahead of the S&P 500's 12.95% - driven by the clean energy sector's recovery from its 2021-2023 drawdown. That recovery reflects renewed investor confidence in the energy transition as rate cuts eased pressure on growth valuations."

"ACES is built for patient investors; its 39% annual turnover rate reflects a buy-and-hold approach rather than active trading, and the 0.55% expense ratio is reasonable for a thematic fund. At $117.1 million in net assets, the fund is on the smaller side, which can translate to wider bid-ask spreads during volatile markets."

ALPS Clean Energy ETF (ACES) offers comprehensive exposure to the clean energy ecosystem through 38 stocks spanning Industrials, Technology, Utilities, Materials, and Consumer Discretionary sectors. The fund targets structural secular growth rather than utility income, with a 0.55% expense ratio and 39% annual turnover reflecting a buy-and-hold strategy. ACES returned 38.2% over the past year, significantly outpacing the S&P 500's 12.95%, driven by sector recovery from 2021-2023 drawdowns as rate cuts eased pressure on growth valuations. However, the five-year return of -59.34% demonstrates the sector's vulnerability during rate-hiking cycles. At $117.1 million in assets, the fund's smaller size may result in wider bid-ask spreads during market volatility.

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