Weakness in Global X Renewable Energy Producers ETF's People and Process Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a cost advantage over competitors, priced within the second-lowest fee quintile among peers.  

 The team managing the passive strategy earns a Low People Pillar. The strategy earns a Low Process Pillar rating.  High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

VEREIT

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Center Coast Brookfield MLP & Energy Infrastructure Fund

Ormat Technologies

Atlantica Sustainable Infrastructure

Sunrun

Banco Latinoamericano de Comercio Exterior SA

SoFi Smart Energy ETF

Enlight Renewable Energy Ltd

Clearway Energy

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Global X Renewable Energy Producers ETF earns a Low Process Pillar rating. The main driver of the rating is the fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's disappointing risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.1 stars, also detracts from the process. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The parent firm's five-year risk-adjusted success ratio of 28% further holds the process back. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track, before fees and expenses, the price and yield performance of the Indxx Renewable Energy Producers Index.  The fund invests at least 80% of its total assets in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index. The underlying index is designed to provide exposure to publicly traded companies that produce energy from renewable sources including wind, solar, hydroelectric, geothermal, and and biofuels (including publicly traded companies that are formed to own operating assets that produce defined cash flows. The fund is non-diversified. 

 The portfolio is overweight in utilities and technology relative to the category average by 8.5 and 2.7 percentage points, respectively. The sectors with low exposure compared to category peers are energy and communication services, underweight the average by 4.9 and 3.3 percentage points of assets, respectively. The strategy owns 44 securities and its assets are more dispersed than peers in the category. In particular, 52.8% of the portfolio's assets are concentrated in the top 10 fund holdings, compared to the category average's 69.6%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 13% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Process

Global X’s team earns a Low People Pillar rating. The most significant detractor from the rating is the parent firm's five-year success ratio of 30%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 67% also limits the team. The experience of the management team, which averages four years at this fund, limits the team as well.

People

Mirae Asset Global Investments is a Korean asset manager and a key player in the Asian financial market. It is a wholly owned subsidiary of Mirae Asset Financial Group, founded by Hyeon Joo Park. Park’s leadership and entrepreneurial spirit have been the driving force behind the global rise of Mirae, and he holds a majority stake in the business. 
Mirae Asset has grown significantly over the years (USD 198 billion as of December 2022) across a diversified platform, of which about 60% of assets are managed in South Korea. We believe that Mirae’s core mutual fund business in the Asia-Pac region is relatively strong. It has a collaborative structure, a strong and large investment team, low manager turnover, competitive fees, and a disciplined approach to product-development pointing toward better stewardship practices relative to peers in these markets. However, this is in stark contrast to its exchange-traded fund business, which accounts for 41% of the total assets. 
The firm’s ETF lineup focuses largely on high-risk thematic strategies that seem gimmicky, emphasizing short-term asset-gathering. The firm appears to leverage trending topics such as robotics and artificial intelligence, virtual reality and gaming, and cloud computing. There’s a notable concern regarding the potential liquidation of these funds since they seem to be designed around investment fads. Furthermore, these products are often expensive, especially compared with broadly diversified index funds and ETFs. Unsurprisingly, Mirae's reflexive product-development strategy has led to an increase in fund closures.
Our experience engaging with the MAGI team to gather critical information for the parent assessment has not been as positive. It hasn’t been as transparent in its disclosures, and unlike its peers, its responsiveness has been inadequate. We prefer firms with a more transparent corporate culture. Overall, these actions hold us back, and the firm retains its Parent Pillar rating of Average.

Average

Parent

Global X Renewable Energy Producers ETF

Global X Renewable Energy Producers ETF is an exchange-traded fund incorporated in the USA. The Fund seeks to track the Index Renewable Energy Producers Index. It invests in companies formed to own operating assets that produce defined cashflow, as well as companies that are involved in the production of renewable energy such as solar, wind and hydroelectric power. 

RNRG tracks a market-cap-weighted index of global renewable energy companies including YieldCos.

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Investors who piled into clean energy themes the last few years are experiencing some performance pain this year, as we appear to be experiencing a detour on the road to the clean energy transition. Related themes have been hard hit this year due to a confluence of events.

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Renewable energy stocks have sold off recently over concerns about how higher interest rates will affect their profitability. But the four renewable power producers we highlight in the article have structured their balance sheets well and have plenty of liquidity and optionality. We compare and contrast the four renewables stocks and view them all as being good buying opportunities today, to varying degrees.

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The Global X Renewable Energy Producers ETF is ideally positioned to benefit from the energy policy reforms being implemented in the United States, European Union, and China. Disruptions in the oil and gas markets have been a positive for renewables.

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Global X Renewable Energy Producers ETF (RNRG) tracks an index of global renewable energy companies. The fund, which started in 2015, has shown a steady return, but never really took off.

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Despite inflation fears turning into recession fears and bringing down the markets as of late, the summer rally did see a rise in interest in thematic exchange traded funds (ETFs).

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On its surface, the newly signed Inflation Reduction Act might appear to do just that — help to reduce inflation. However, upon closer examination, there are a number of government subsidies aimed at reducing the country's carbon footprint, thereby putting renewable energy sources in focus.

This ETF Should Benefit From the Newly Signed Inflation Reduction Act

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According to a Reuters article, China is looking to add 75 to 90 gigawatts (GW) of solar power in 2022, opening up the investment field for renewable energy plays in solar energy. “Distributed solar power accounted for over 50% of total newly installed solar capacity for the first time in 2021.

China's Push for More Solar Power Could Boost This ETF

Renewable energy has been one of the mainstays of U.S. president Joe Biden's agenda, and it continues to be so after his State of the Union speech. Of course, he had to address fighting inflation, since it's top-of-mind for many Americans.

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Renewable energy got a boost in 2021 thanks to the trillion-dollar infrastructure package that was signed into law in the fourth quarter. As such, the Morningstar North America Renewable Energy index jumped over 15% in November and is up 7% for the year.

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Industrial production – manufacturing output, oil-and-gas extraction, mining, and gas and electric utilities – fell 1.3% in September from August, pushed down by production of motor vehicles and parts, which plunged 7.2% for the month, and by oil and gas extraction, which fell 3.8%. Manufacturing of motor vehicles and parts has been hobbled all year by supply semiconductor shortages that have led to rotating shutdowns of parts manufacturing operations and assembly plants.

Vehicle & Parts Production Plunged To Lowest Since Lockdown; Oil & Gas Has New Script

While Congress continues to mull over the trillion-dollar infrastructure bill, ETF investors shouldn't miss out on the Global X Renewable Energy Producers ETF (RNRG). After successfully pushing through the Senate, the bill will now go up for vote in the House of Representatives.

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Solar energy is a vital component in the push toward renewable energy—a win-win for the Global X Renewable Energy Producers ETF (RNRG). Solar power was once an option that was exclusively available for the well-to-do.

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U.S. investor interest in renewable energy sources continues to trend higher midway through 2021, energizing assets like the Global X Renewable Energy Producers ETF (RNRG). “The United States has claimed the top spot on the latest IHS Markit Global Renewables Markets Attractiveness Rankings mainly on account of sound market fundamentals and the availability of an [.

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New studies linking renewable energy and health can only further boost assets like the Global X Renewable Energy Producers ETF (RNRG). “Researchers are drawing more connections between reducing air pollution from fossil fuels and potential improvements to both mental and physical health,” an article in The Hill noted.

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Global governments will increasingly penalize dirty carbon-sourced energy and reward clean renewable-sourced energy in order to meet their emissions targets. These targets have been getting stricter each year. Carbon taxes to penalize carbon emissions and subsidies/tax incentives to rapidly boost renewables. Either way renewable energy sources such as hydro, solar, wind, etc. will be the winners.

News for Global X Renewable Energy Producers ETF ETF (RNRG)