Why you may want to invest in clean energy stocks in 2021

The renewable energy industry is growing. Analysts from Allied Market Research expect this sector to be valued at $1.51 trillion by 2025. This is in part due to the increasing number of millennials and Gen Zers entering the market, as they have a more vested interest in investing in clean energy. However, this growth is likely more connected to the president’s proposal of an infrastructure bill that will emphasize spending in renewable energy sectors.

Regardless of the biggest catalyst, one thing investors can expect is to see clean energy stocks making an impact on the market over the next couple of years. If you have not already, it may be time to include clean energy stocks in your portfolio.

Investing in clean energy stocks

Clean energy is not only growing in the United States — it is growing in markets around the world. Investors have options for investing in domestic clean energy stocks or foreign, as well as investing through exchange-traded funds (ETFs).

Investing through ETFs is an easy way to invest in clean energy without having to toil over which companies are likely to have the biggest impact. A single ETF can include a variety of clean energy companies. If one of them is not performing well, but the rest are, your portfolio should avoid a big hit. 

This is unlike investing in clean energy stocks directly, which involves time and research and bigger risk. If one of your clean energy stocks performs poorly, your portfolio is more likely to feel the impact.

Regardless of whether you choose to invest in clean energy stocks directly or through ETFs, clean energy may provide opportunities for you to further diversify your portfolio and earn gains from a growing market.

Talk to a ProVise CFP® professional about investing in clean energy stocks

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance, and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about investing in clean energy stocks? Contact ProVise today to schedule a complimentary consultation.