Should I Buy iShares clean energy ETF (ICLN)? Finance YouTuber Analysis

The YouTuber suggests ICLN as a potential rebound play for 2024, arguing that higher interest rates negatively impacted clean energy valuations and financing. With anticipated Fed rate cuts, these stocks, currently trading at 14 times earnings despite strong growth, could see significant returns as investor sentiment shifts.

“with the FED expected to cut interest rates as many as six times in 2024 here seen in this market expectations on the CME fed watch tool the stocks in this fund could find themselves rebounding back into that easy money policy”

The YouTuber advises caution against investing in the iShares Global Clean Energy ETF for purely return-driven reasons. He argues that while the clean energy market is growing, this growth is already priced into the ETF's valuation, which currently trades at a significantly higher P/E ratio (around 28x) compared to the broader market (15-20x). Historical performance also shows a loss over 15 years, indicating that market growth does not automatically translate to investor returns, and the sector faces issues like intense competition and political influence.

“Wenn du 10.000 Euro damals investiert hättest, hättest du heute knapp 6000 Euro da, das also 40 Prozent deines Geldes verloren.”