By: Ron Pernick
Quarterly overview of stock index performance and the top trends impacting the state of clean tech.
This is a remarkable time for the growth of clean energy investments and deployment. In 2022, global energy transition investments reached a record high of $1.1 trillion (up from $849 million in 2021), matching investments in fossil fuel production for the first time ever, according to BloombergNEF. This year the International Energy Agency projects that global clean energy investments will be in the $1.7 trillion range. And whether you’re tracking solar PV installed, energy storage deployed, EVs shipped, or heat pumps delivered, 2022 marked new annual records.
Against this backdrop, year to date (YTD) through the end of June, all Nasdaq-Clean Edge indexes outperformed the IXE (Energy Select) index, which declined 5.45%. The Nasdaq OMX Clean Edge Smart Grid Infrastructure™ Index (QGRD™) was the top performer, up 21.61%, followed by the Nasdaq Clean Edge International Green Energy™ Index (CELSI™) which increased 14.52%. The ISE Clean Edge Water™ Index (HHO™) was up 12.27%, the Nasdaq Clean Edge Green Energy™ Index (CELS™) increased 9.01%, and the ISE Clean Edge Global Wind Energy™ Index (GWE™) was up 1.92%. The S&P 500 increased 16.89% over the same period. All results are on a total return basis.
YTD Index Performance (Total Return Through June 30, 2023)
As of June 30, 2023 (Total Return) | 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 | -1.54% | -1.68% | 6.29% | 8.36% | 3.31% | 8.53% | 8.74% | -1.13% |
YTD | 9.01% | 1.92% | 12.27% | 21.61% | 14.52% | N/A | 16.89% | -5.45% |
12-Month | -1.13% | 4.06% | 24.49% | 37.94% | 14.42% | N/A | 19.59% | 18.08% |
During Q2, the S&P 500 was the top performer, up 8.74%, followed closely by the Nasdaq Clean Edge Global Green Income™ Index (GGINC™) and QGRD, up 8.53% and 8.36% respectively. HHO and CELSI were also both in positive territory, increasing 6.29% and 3.31% respectively. CELS and GWE declined 1.54% and 1.68% respectively, while IXE (Energy Select) was down 1.13%.
Q2 2023 Index Performance (Total Return)
Over the past 12 months (total return basis through the end of June), the top Nasdaq Clean Edge index performers (both beating out the comp indexes) were infrastructure-related, with QGRD increasing 37.94% and HHO up 24.49%. CELSI and GWE were up 14.42% and 4.06% respectively, while CELS was down 1.13% over the trailing 12-month period. This compares to the S&P 500’s 19.59% increase and IXE’s 18.08% increase.
12-Month Index Performance (Total Return Through June 30, 2023)
Financial products tracking Nasdaq Clean Edge indexes equaled more than $4 billion in assets under management as of July 7, 2023.
DATA DIVE: THE CLEAN EDGE TECH MATURATION MODEL
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 indexes during Q2 2023.
Best and Worst Constituents (Q2 2023)
Winners | Losers | ||
|---|---|---|---|
Hyosung Heavy Industries Corp. | 70.20% | EVgo, Inc. | -48.65% |
Uponor Oyj | 68.88% | Beam Global | -34.95% |
Eos Energy Enterprises, Inc | 68.87% | McPhy Energy SA | -34.74% |
NVIDIA Corporation | 52.29% | Workhorse Group Inc. | -34.47% |
Ecopro Co., Ltd. | 49.44% | PowerCell Sweden AB | -31.39% |
Neoenergia SA | 48.76% | Blink Charging Co | -30.75% |
Navitas Semiconductor Corporation | 44.19% | Soltec Power Holdings SA | -30.48% |
FTC Solar, Inc. | 43.11% | SunPower Corporation | -29.19% |
Chung-Hsin Electric & Machinery Manufacturing Corp. | 41.58% | West Holdings Corporation | -29.12% |
Companhia de Saneamento de Minas Gerais | 41.32% | Azure Power Global Ltd. | -28.92% |
QUARTERLY INSIGHT: SMART GRID INFRASTRUCTURE
As noted above, the global smart grid and grid infrastructure sector has performed well against several market comps. Smart grid and electric infrastructure are the backbone of the energy transition, and the sector has begun to garner increasing attention as being central to broader clean energy and electrification trends. Over the past 10 years, the Nasdaq OMX Clean Edge Smart Grid Infrastructure™ Index (QGDX™) was up 261.7%. During the same period, the Nasdaq Global Total Return™ Index (NQGIT™), designed to track the performance of global equities covering more than 98% of the entire listed market capitalization of the global equity space, rose 123.8%. QGDX outperformed NQGIT in seven of the 10 years between 2013 and 2022. So far in 2023 (YTD through the end of June), QGDX and NQGIT have increased 21.61% and 13.87% respectively.
A modernized grid makes it easier to transmit, distribute, manage, and store electricity, and supports both resiliency and the increased use of renewable energy sources. Last month, for example, construction began on the long-delayed TransWest Express Transmission Project which will transmit wind energy over high-voltage direct current transmission lines from the 3 GW Chokecherry and Sierra Madre wind farm in Wyoming (the largest onshore wind generation project in North America) to southern California. Clean energy projects like this, paired with interregional transmission projects, are supporting economic growth and helping individuals and organizations meet their decarbonization goals.
Disclaimer:
The information contained above is provided for informational and educational purposes only. Clean Edge is not an investment adviser, and none of the information, including any Nasdaq Clean Edge index, should be construed as investment advice or relied on as the basis for making any kind of investment decision. Neither Clean Edge nor any of its affiliates makes any recommendation whatsoever to buy or sell any securities, fund, or financial product or any representation about the financial condition of any company, fund, or financial product. Information regarding any Clean Edge index is not a guarantee of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results and should never be relied upon for making any kind of investment decisions. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.