Megatrends. Climate change and decarbonization. Technology innovation and automation. Accelerating urbanization. Global standard of living increases. All represent the leading megatrend themes that will redefine the economy over the coming decades.
Megatrends are not a new phenomenon. But the impact across industries has accelerated. Modern portolio management and new investment vehicles expand an investor’s ability to participate.
The megatrend examples above are multi-decade investment themes that impact multiple industries, compel structural shifts in the economy, and upend the drivers of corporate earnings.
Investors continue to look for ways to participate in trends that will drive long-term growth. But what is the best method to capitalize on any certain megatrend and when? Is it preferable to take a narrow approach, betting on one technology, government policy forecast, or consumer expectation, or take a broad cross-industry bet across the whole value chain?
We believe the Pickens Morningstar® Renewable Energy ResponseTM ETF (ticker: RENW) offers investors exposure to multiple megatrends across the entire value chain of renewable energy with higher risk-adjusted returns and long-term exposure to the growing future of energy. Energy, Environmental, Tech and ESG investors will all benefit from a more comprehensive approach to investing in this exciting sector.
This paper will define the industry, highlight how investors can capture exposure to multiple Megatrends through investing in Renewable Energy, and why we believe investing across the entire value chain offers the best long-term opportunity.
When Megatrends Collide
Why invest in one megatrend when the synergies of multiple themes compound the long-term upside? We believe Renewable Energy benefits from the confluence of four major megatrends.
Technology Innovation & Automation
- More efficient solar panels. Larger wind turbines made from carbon fiber. New battery chemistry. Vehicle battery management software. Smart electricity meters. Robotic advancements in manufacturing to drive
Climate Change & Decarbonization
- Environmental concerns drive consumer and industry adoption. Government policies for carbon taxes, cap-and-trade and tax incentives. Fossil fuel divestment mandates from major investment funds. Geopolitical risk
- Congestion and pollution concerns. More economical, energy efficient buildings.
Global Standard of Living Increases
- More demand for vehicles, appliances, air conditioning, housing,
- World primary energy consumption expected to grow 40%+ from 2019 to 2050.
What is Renewable Energy?
The investment sector of Renewable Energy is nebulous. It’s core attraction goes beyond merely seeking to reduce carbon-based fuel consumption and environmental pollution. Several renewable solutions exist today, and as technology and scale improve, increasingly deliver economic savings to consumers around the world.
At the most fundamental level, all of the energy available on Earth is
derived from the most fundamental of physics: the sun’s radiation which basks the Earth, the molten heat from the Earth’s core and to a lesser degree, tidal energy as a result of the Moon’s gravitational pull on our planet.
Clearly, while fossil fuels will remain the primary fuel source of energy for the coming decades, renewable energy solutions are not only necessary, but growing at the fastest pace. But what path do investors take to capitalize on this trend and what classifies as renewable energy?
To segment the theme, consider what is required to capture the future opportunity of renewable energy across the entire Value Chain – both Supply and Demand:
- These are cutting edge technology and manufacturing companies that create the products that produce energy (electricity or fuels) using renewable sources or discover ways to improve efficiency of the energy we use. This includes companies that own or build renewable energy generation facilities, whether producing local distributed power on a rooftop or large scale utility
- Companies that make purely electric cars, buses, trucks, trams as well as the companies that provide the technology or equipment to support them. Service companies that operate or provide infrastructure for public/cargo transportation systems using renewable equipment, such as rail or subway operators or charging
- The users of energy are those companies that are not involved within the energy industry, but use it to power their businesses: retail stores, office buildings or industrial facilities. This segment highlights the demand pull perspective that fulfills a significant portion of renewable energy’s growth.
The Renewable Energy Landscape
While most investors think of the solar photovoltaic (PV) industry as rooftop installations on homes, the fact is that the bulk of demand derives from commercial rooftops and utility-scale installations.
Solar panels, constructed of cells etched into silicon wafers, then connected together into a module (panel), have seen dramatic growth and cost reductions over the past 12 years. Consider that in 2007, about 2.5 GW of solar PV was installed globally and at an average module cost of ~$4.00 / watt, while in 2019, over 100 GW will be installed and the price of a module is about 20 cents. That’s a cost decline of 95% in just 12 years!
Even more compelling is the fact that over 1/3 of all new power plants of any kind scheduled to be built globally in 2020+ are large solar PV utility installations. Solar power is gaining market share at a rapid clip.
The largest producers today are not only utilities, but large retailers and companies that either build their own facilities or sign long-term contracts with utilities at rates that are often less than a comparable coal or natural gas plant.
According to the US EIA, solar power contributed ~0.04% of electricity generation in 2005 and is projected to be 15%+ by 2050.
𝐔𝐒 𝐒𝐨𝐥𝐚𝐫 𝐏𝐕 𝐄𝐥𝐞𝐜𝐭𝐫𝐢𝐜𝐢𝐭𝐲 𝐆𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐨𝐧 𝐏𝐫𝐨𝐣𝐞𝐜𝐭𝐢𝐨𝐧𝐬 𝐛𝐲 𝐑𝐞𝐠𝐢𝐨𝐧 (𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐊𝐖𝐡)
𝐸𝑥ℎ𝑖𝑏𝑖𝑡 3 𝑆𝑜𝑢𝑟𝑐𝑒: 𝑈𝑆 𝐸𝑛𝑒𝑟𝑔𝑦 𝐼𝑛𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛 𝐴𝑑𝑚𝑖𝑛𝑖𝑠𝑡𝑟𝑎𝑡𝑖𝑜𝑛 (𝐸𝐼𝐴) 𝐴𝑛𝑛𝑢𝑎𝑙 𝐸𝑛𝑒𝑟𝑔𝑦 𝑂𝑢𝑡𝑙𝑜𝑜𝑘 2019.
Wind turbines have some of the lowest cost of energy production in the power generation market – with a range of 4-7 cents per KWh – often beating coal and combined cycle gas plants in many parts of the US and world.
Of course, basic windmills have been around since the 19th century, but technology advances that use carbon fiber blades, advanced software and other exotic materials have enabled modern turbines to grow ever larger, thereby generating much more energy per land use.
As mainstream adoption of wind is more mature than solar, global installations have ranged from 50 to 60 GW per year, with US installations in the 8 to 10GW in recent years. Expectations are global growth will range around 5% per annum for the next decade. Still, new wind utility scale plants account for 10% or more of newbuilds planned for 2020 and beyond.
Power plants can use biomass, such as wood and other biomatter, as an alternative to coal. Up until the 1990’s, it was only biopower and hydropower that were considered “renewable”. While it has fallen out of favor compared to the more advanced solar and wind solutions today, it has one major advantage: it can be used in plants that must provide continued “baseload” power.
A utility’s primary mission is to provide constant reliable power to customers while simultaneously balancing the amount of power flowing through the grid network. As solar and wind assets grow across geographies of utilities, their inherent intermittant and uncertain timing of electricity generation can be managed better.
But a utility still needs to have a baseload of power from coal, gas, nuclear or hydro which is often
supplemented by gas “peaker” plants that can be quickly turned on and off as needed. Biopower is a way a utility can extend the life of a coal plant with a renewable and cleaner, albeit more expensive, source of fuel vs coal. While the US is primarily a supplier of biomass but not much of a consumer, much of Europe is increasingly converting its coal plants to use wood pellets.
Just as most traditional fossil fuel or nuclear power plants use heat to generate steam to turn a turbine, geothermal power plants tap into the molten heat under the Earth.
Building a geothermal plant is site-specific and, in many ways, similar to prospecting for oil. The cost depends heavily on the hydrothermal resource temperature, a well’s productivity and depth. Once tapped, water is cycled deep within the Earth to emerge as steam to the turbine. Capital costs vary widely depending on location and access to grid connectivity.
In the US, the vast majority of viable sites are in the Western US. According to a 2019 report by the DOE’s NREL, the potential in the US is 39 GW of electricity generating capacity, with 9 GW discovered and 30 GW still undiscovered.
Fuel cells are a technology that combine hydrogen and oxygen to produce electricity. The “cell” is multiple layers of electrolyte and platinum catalytic electrodes with water as the only emission. While hydrogren is the most abundant element on Earth, it does not occur naturally and must be separated, typically from natural gas, then compressed and stored to be fed into a fuel cell. Fuel cells are therefore a low carbon, but not zero carbon solution.
Auto makers experiment with fuel cell cars, however building out hydrogen infrastructure is unlikely given the emphasis and growth of pure electric vehicles and charging stations.
Stationary fuel cells, however, do have advantages in distributed power locations for industrial locations or in specialized applications, such as forklifts in warehouses where a refuelling hydrogen location can be easily co- located. In any event, fuel cells can provide Megawatts of power, but are not yet scalable to the Gigawatt scale needed for utility-scale adoption.
For renewable energy to ever be viable as a full-scale global solution, power storage is critical as wind and solar power naturally fluctuate and will never be a baseload source of power on their own. Storing the output of a solar panel during the day to use at night can only be achieved by cost-effective storage solutions, which are still far from economically viable in the near term.
There is hope, however: several companies are either producing batteries at scale for utility scale use, developing new battery technologies, or developing controls to use parked electric vehicles as localized storage. It is still early, however, and several startups are targeting this next wave of growth.
Utilities, both local and multi-state, provide the vast majority of the electricity in the U.S. They are the ultimate producers. And several have transitioned their asset base to integrate more renewables vs. traditional oil, gas, coal and nuclear fuels.
As we detail later in the report, the cost economics have already made solar, wind and other fuel types more cost effective. But the trend is obvious as renewable technology and economies of scale advance. For the U.S., renewable power will be a large part of our energy mix in the future.
Fully electric vehicles and plug- in hybrids are just at the early stage of adoption, but
growing fast. There remains several hurdles still ahead: mainly cost, customer acceptance and technology advances.
Researchers who dive into the potential advancements necessary to bring costs down in materials and, more importantly, battery technology, project component costs could equal traditional internal combusion engine (ICE) vehicles by 20251.
Total cost of ownership, which considers the higher initial cost for an EV today vs. the savings on future fuel costs, is a gap that is surprisingly small today.
Driving the adoption of EVs is a result of increased consumer concerns for the environment, tightening emissions regulations around the world, government tax credits and policies, and soon enough, an economic advantage of lower total cost of ownership.
Green Transportation Technology & Equipment
Critical to the development of electric vehicles, expected growth and consumer adoption are the companies that provide the technologies or equipment to support manufacturing.
Electric vehicles, which includes cars, buses, trucks and trams, require unique technology and manufacturing developments and several established and companies have begun to address these needs. While batteries and new battery technology are the focus for investors today, advanced electric drivetrains, regenerative braking and battery management software will also benefit.
While traditional auto parts and manufacturing suppliers are not yet a large part of this segment, we expect their exposure to the EV market will grow as adoption increases.
Infrastructure & Services
As expected, the anticipated increase in EVs on the road will require a build out of infrastructure and services, primarily charging stations. Consumers’ anxiety about range on existing EVs for sale with current battery technology require a network of charging stations beyond their home.
In this segment, we also include companies that operate public or cargo transportation systems, mainly rail, trams, light rail or metro / subways that have integrated renewable energy into their portfolio to provide motive power.
We believe investors would not benefit from the complete thematic of renewable energy without including companies that are the consumers of renewable power – the demand side of the equation.
A quantitative approach is required to determine which companies meet 25% or 50% of their primary energy requirements from renewable energy depending on capital intensity and their carbon footprint of operations.
Small and large corporations may pursue a renewable implementation through on-site implementations, carbon credits or long-term contracts with utilities. The factors for a company to integrate renewables is likely a mix: public relations, designation as sustainable for ESG investors and economic certainty in cost of operations.
Low Capital Footprint Intensity According to Morningstar® Rating System
Technology, Financial Services, Real Estate and other industries that are service based typically have small physical plant costs other than office buildings. If a company has low carbon exposure in operations, they need to meet 50% or more of their power needs from renewables.
High Capital Footprint Intensity According to Morningstar® Rating System
Industrial, Manufacturing, Mining and other high carbon intensive industries. If a company has high carbon exposure in operations, they need to meet 25% or more of their power needs from renewables.
Why Invest in Renewable Energy?
Renewable energy offers the highest long-term growth potential in the Energy industry.
The arguments for investing in renewable energy are both economic and environmental. Renewable energy is beyond the point of a decade ago where you had to be a “believer” or “environmentalist” to take a chance on technologies unproven at scale.
The industry has reached an inflection point where renewables offer a lower levelized cost of energy to end users than traditional fossil fuels in many parts of the US and world. According to the EIA2, renewables surpassed coal for electricity generation for the first time in April, 2019 in the United States.
However, there is also a fundamental environmental argument. The more consumption of renewable energy that takes place – the lower the cost of renewable energy and the less use of carbon emitting energy sources.
In terms of risk to growth potential – renewable energy industries like wind
and solar are still not fully cost-competitive in every part of the globe relative to non-renewable energy industries. Yet they are less expensive in a growing number of regions as each year passes.
So while long-term projections are always uncertain and recent cost competitive advances could slow, solar and wind capital costs have been plummeting, mainly due to the benefits of rapidly improving technology and increasing customer awareness and adoption.
It is a strong probability that renewable energy will continue on its current projection.
Investors in the U.S. are also increasingly integrating ESG sustainable investing into their overall portfolio considerations.
Morningstar Research found that 72% of U.S. population expressed at least a moderate interest in sustainable investing, qualifying as “balanced,” “sustainability- minded,” or “sustainability-driven.”3
Renewable Energy Size and Growth Potential
According to the UN Environment’s 2018 Report on Global Trends in Renewable Energy Investment4, global investment in renewable energy exceeded $200 billion in 2017 for the eighth straight year, with 40.5 billion invested in the U.S. The world has invested a total of $2.9 trillion in the industry since 2004.
The share of renewables in meeting global energy demand is expected to grow by one-fifth in the next five years to reach 12.4% in 20235. According to the EIA, the U.S. total renewable energy share of electricity generation (including hydropower) is expected to grow from 18% in 2018 to 31% in 20506.
Of course, projections to 2050 range from 25-45% of market share depending on future fossil fuel pricing, technological advancements, geopolitical changes and any other number variables inherent in making long-term projections. But it cannot be denied that renewables will continue the dramatic growth that started in the late 2000’s.
From a transportation perspective, there is potential by 2050 for nearly 40% of current demand for oil coming from sources susceptible to easy electrification. The oil industry currently enjoys massive scale advantages over renewables, but that incumbency is time limited.
The Inflection Point is Now
Why Utilities are Switching to Renewable Energy Power Plants
The total cost of generation for fossil fuels involves a relatively lower upfront capital cost for the internal combustion engine or electricity turbine, followed by an ongoing highly variable cost of fuel depending on consumption levels. This exposes the vast majority of the economy to commodity risk, often leading to carbon risk exposure for businesses and geopolitical ramifications.
For utilities, renewables turn the traditional economic model on its head. The reason why wind and solar energy pose a competitive economic threat to the energy system established over the past 100 years is simple: they have a short-run marginal cost of zero. When the wind blows or sun shines, the primary source of energy is free.
While utilities at first struggled with the intermittent power produced from solar or wind, diversification across geography and better grid balancing have required less traditional oil or gas “baseline” capacity. Nearly all of the costs of wind and solar energy are in the infrastructure required to capture it, and the capital costs have been plummeting over the past five years7.
Utilities can more accurately calculate the total levelized cost of energy over the life of the plant and as the wind and solar industries have gained scale and extreme price competition as a commodity product, utilities are increasingly switching their asset base over to renewables.
Why Auto Makers are Embracing Electric Vehicles
The writing is on the wall for auto makers: EVs are coming and the transition will accelerate. The transition to EVs will present significant challenges and will change the game for the internal combustion OEM auto makers.
To survive into the coming decades, OEMs realize they must start the transition now of diversifying their supply chain, changing powertrains, shorten design and delivery schedules and adding technology and software capabilities.
Volvo, for example, announced8 that every vehicle in 2019 and beyond will be electrified with a goal of 1 million electric vehicles on the road by 2025.9
Why Companies are Increasingly Committed to Going Green
The commercial and industrial sectors are the largest consumers of electricity.
Uncertainty in future electricity costs, based on the variability of commodity prices, adds uncertainty to future margins.
Companies are embracing renewables for a variety of reasons beyond economics including sustainability and environmental concerns and public relations. But the scale and rate of commitment highlights that economic advantages are paramount.
To quantify the point, nearly 200 of the largest global companies have joined the RE100 initiative10, an increase of 30% in just the last 9 months. These companies commit to eventually sourcing 100% of their electricity needs from renewable sources with an average target of 2026.Why Investing in the Entire Value Chain is Critical
Many investors, and even Energy industry specialists, have a narrow view of what the sector of renewable energy entails: often focusing on solar or wind power. This misconception can often lead investors to choose a particular stock, mutual fund or ETF that targets these segments specifically.
As a result, the investor is exposed to significantly more idiosyncratic risk: technology, supply chain, geopolitical and policy risks are just a few examples. Take the fact that the vast majority of the solar industry is based in China and you get the picture.
We believe that to capture full thematic exposure to multiple megatrends benefiting renewable energy over the long term, while still participating in near-term growth, renewable energy needs a broader definition.
Specifically, renewable energy investors would be served best by gaining exposure to producers, consumers and the green transportation companies that connect the two.
To draw a parallel to the Oil and Gas industry, we segment the renewable energy sector into 3 primary tranches: Upstream, Midstream and End Users.
How to Invest in Renewable Energy
Investors have a wide range of options of investment vehicles to gain exposure to renewable energy.
The best vehicle depends on their sophistication, conviction in a particular subsector, appetite for risk, consideration of fees and overall portfolio goals.
Investors can choose to invest in single stocks, sector-specific funds, thematic funds, or through a financial adviser.
Depending on risk appetite and investment goals, investors can choose to be an active or passive investor and whether to select a mutual fund, hedge fund or ETF.
We believe ETFs offer all of the benefits of mutual funds: diversification and subsector or thematic exposure, but with the added benefit of a passive structure based on tracking an index, lower fees and potential tax advantages.
|Asset Type||Investor Industry Knowledge Required||Investor Research Research||Fee Load|
Exhibit 15 Source: BP Capital Fund Advisors
Why RENW is Different
The Pickens Morningstar® Renewable Energy ResponseTM ETF (ticker: RENW) is designed in a fundamentally different way than its ETF peers.
RENW is one of the very few ETF products focused only on the North American market.
Tracking the Morningstar® North America Renewable Energy IndexSM, the ETF’s holdings are determined through a rigorous quantitative process driven by data from Sustainalytics, a global leader in ESG and Carbon Risk analytics.
Every consituent in the fund is selected based on either its revenue contribution from renewable energy or green transportation or its carbon risk exposure and percentage of primary energy use from renewable energy sources.
The key advantage of the fund is symbolized in part of its name: Response. RENW is the only product on the market that invests across the entire value chain of renewable energy.
By quantitatively selecting the highest quality Producers and Consumers of renewable energy, along with Green Transportation companies, the fund enables investors to participate in the long-term growth of the fastest growing segment of the Energy industry. As noted in the Introduction of this paper, renewable energy benefits from the tailwinds of several colliding megatrends.
By design, the fund seeks to avoid the idiosyncratic risk of picking one subsector of renewable energy. An investor may have a strong opinion on solar, wind, electric vehicles or battery technology. Or they could pursue a derivative investing approach with the belief that utilities will have future lower marginal costs and that power consuming companies that will benefit with higher margins over the long term by lowering their electricity costs with renewable energy.
RENW, instead, takes a comprehensive approach which, compared to its peers, has greater sector diversification, lower volatility and higher risk-adjusted return.
Energy investors must contemplate the volatility derived from commodity, policy and geopolitical risk of the sector. Given environmental concerns, how many investors view coal as a long-term winner? Even oil and gas investors, whether they focus on Upstream, Midstream or Downstream understand the typical energy cycle.
RENW’s portfolio construction mitigates the downside and captures the upside of the energy cycle as renewables gain market share.
ESG and environmental investors have several options, but few options that take a targeted comprehensive approach on which companies will lead the transition to a low-carbon economy as opposed to merely deselecting carbon producers.
A Word about Risk
As the previous section of this whitepaper discussed, RENW seeks to mitigate the risks of investing in renewable energy, relative to its peers. As with any investment, however, some risk in unavoidable, including possible loss of principal. Some potential primary risks of the Fund are briefly identified below. Read the Fund’s prospectus for a more comprehensive discussion.
RENW seeks to track the performance, before fees and expenses, of the Morningstar® North America Renewable Energy™ Index (the “Index”). The Index is a rules-based, modified equal-weighted, liquidity-adjusted index of U.S. and Canadian-listed common stocks of companies in North America that are leaders in the transition to a low-carbon economy. Index constituents either derive significant revenue directly from renewable energy or green transportation products or services, or they meet a significant portion of their energy needs from renewable energy sources, such as the sun, wind, and water. The Index reflects a broader
universe of industries than traditional “renewable energy” indexes.
RENW will be concentrated in an industry, group of industries, geographic region or country (especially Canada) to the extent the Index is so concentrated; and RENW may invest a relatively large portion of its assets in a single issuer or a small number of issuers. Consequently, the Fund’s performance may be more volatile than a diversified fund because it is more likely to be impacted by events or conditions affecting a particular industry, region, country, or small set of issuers.
Companies in the utilities sector can be adversely affected by a variety of factors, including (but not limited to) supply and demand constraints, operating costs, governmental regulation, liabilities for environmental damage, rate caps, movement of interest rates, exchange rates, and international competition. Foreign securities involve special certain risks, such as foreign currency fluctuations. The Canadian economy is reliant on natural resources and commodities, which poses risks from the fluctuation of prices and the variability of demand for such products. Small and mid-capitalization companies may be more vulnerable to adverse financial and market conditions than large companies.
RENW uses a “passive management” approach to track the Index. The Fund would not sell shares of an Index
security due to current or projected underperformance of the security unless it is removed from the Index.
As with all ETFs, there may be times when the market price of the Fund’s shares is more or less than the NAV
per share due to supply and demand of shares or during periods of market volatility
The information provided in this white paper and in the linked documents should not be considered as recommendations to buy, sell or hold any security. There is no assurance that any securities, industries or sectors discussed herein are, or will remain, profitable.
Renewable energy investing offers the opportunity to capitalize on several colliding megatrends over the coming decades.
Total world energy consumption is expected to increase 40% by 2050, with renewables (including hydropower) expected to capture up to 45% by 2050, a massive gain in market share gain from the 18% it contributes today. Most of that growth will be driven by new technologies such as solar, wind, biopower, fuel cells and geothermal
Investors have several options in how to gain exposure to the renewable energy theme. Several products offer investors a specific bet on one technology or sub-theme, or a generalized global product. These options often expose investors to idiosycratic, geopolitical, currency and liquidity risks.
We believe that the ideal approach to capture the growth potential of renewables is to invest across the entire value chain – which entails a portfolio contruction of the the producers, the consumers and the green transportation companies in one product.
That is why TriLine Index solutions, an affiliate of BP Capital Fund Advisors, chose to track the Morningstar® North America Renewable Energy IndexSM. This index not only offers comprehensive exposure across the theme, but is calculated through a purely quantitative model driven by Sustainalytics data, a global leader in ESG and Carbon Risk analytics.
The Pickens Morningstar® Renewable Energy ResponseTM ETF (Ticker: RENW) offers the most comprehensive product in the market to capture the entire value chain of the industry and one of the few focused exclusively on the North American market.
Data shows RENW potentially offers investors higher risk-adjusted returns, lower volatility, greater sector diversification, less exposure to energy cycles and reduced momentum than other renewable energy options. By seeking companies with superior financial health and quality, RENW offers more potential upside in both the near-term and long-term.
About BP Capital Fund Advisors
BP Capital Fund Advisors (BPCFA) is an SEC-registered RIA, led by a Texas-based team with decades of combined energy investing experience. We seek to build portfolios that preserve capital throughout the energy cycle while providing investors with exposure to the unique technologically-driven growth taking place in the United States oil and gas and renewable industries.
About TriLine Index Solutions
TriLine Index Solutions, an affiliate of BP Capital Fund Advisors, designs passive index strategies for exchange traded products and institutional accounts and serves as the Advisor to the Pickens Morningstar® Renewable Energy ResponseTM ETF (Ticker: RENW).
The design of RENW is informed by decades of experience and energy thought leadership of T. Boone Pickens and his team. Renowned as a geologist, businessman, and shareholder activist, Pickens has publicly advocated for the expansion of U.S. energy resources through the Pickens Plan, a nationally-recognized movement to reduce America’s dependence on OPEC oil.
The core pillars of the Pickens plan:
- Use America’s abundant natural gas to replace imported oil as a principal transportation fuel for fleets and heavy-duty trucks.
- Build a 21st century backbone electrical transmission
- Develop renewable energy sources, including wind and solar
- Increase energy efficiency in home and commercial buildings with technology improvements and upgrading
RENW invests in renewable energy in a contemporary approach that includes companies along the entire renewable energy value chain – renewable energy producers, green transportation and users of renewable energy. The team believes that a global focus on renewable and clean energy will create transformative growth in this sector.
RENW Fact Sheet: https://www.renewableenergyetf.com/factsheet
RENW Prospectus: https://www.renewableenergyetf.com/prospectus
TriLine Index Solutions: https://www.renewableenergyetf.com/
BP Capital Advisors:
Morningstar® North America Renewable Energy IndexSM Fact Sheet:
Morningstar®: Looking Past the Stereotypes of ESG Investors: https://www.morningstar.com/blog/2019/04/22/esg-investors.html
Shares of RENW are distributed by Foreside Fund Services, LLC, not affiliated with TriLine Index Solutions, LLC.
1 Morgan Stanley, Electric Vehicles On the Charge, August 2017
2 EIA (US Environmental Information Administration)
3 Morningstar Research – “Are your Clients ESG Investors?” – April 22, 2019
4 UN Environment’s 2018 Global Trends in Renewable Energy Investment
5 IEA World Energy Investment Outlook 2018
6 EIA Annual Energy Outlook 2019
7 EIA 2019 Utility Plant Cost Figures for New Generating Technologies
8 New York Times, Volvo, Betting on Electric, Moves to Phase Out Conventional Engines, 7/5/17
9 Volvo Cars, Electric Initiative; https://www.volvocars.com/us/about/electrification
10 RE100 Initiative; http://there100.org/
For more information about the risks of investing in the Fund, see the section in the Fund’s Prospectus titled “Principal Investment Risks.”