ACES
Fund Stats as of 12/11/2018
Symbol ACES
CUSIP 00162Q 460
ISIN US00162Q4608
Inception Date 06/29/2018
Dividends Paid Quarterly
Fund Type Exchange Traded Fund
Market Price $24.73
Last Trade Price $24.72
NAV $24.56
NAV Change $-0.05
Total Net Assets $17,193,627
Total Market Value $17,156,188
Premium/Discount(%) 0.69%
Difference ($) $0.17
Volume 4,574
Shares Outstanding 700,002
Expenses as of 06/29/2018
Management Fee0.65%
Other Expenses-
Total Operating Expenses0.65%
Fund Resources
Prospectus 
Statement of Additional Information 
Resource Library  

Investment Objective

The fund seeks to track the performance of an index comprised of U.S. and Canadian based companies that primarily operate in the Clean Energy sector. Constituents are companies focused on renewables and other clean technologies which enable the evolution of a more sustainable energy sector. The index is classified into 2 categories and 7 thematic sub-segments:

  • Renewables – Solar, Wind, Hydro/Geothermal, Biomass/Biofuel
  • Clean Technology – Electric Vehicles/ Energy Storage, Efficiency/LED/Smart Grid, Fuel Cells

Why Invest in Clean Energy?

There is a major transformation underway in the energy sector today. The transition to clean energy is not just about adding more renewables. It’s about cleaner and smarter technologies transforming worldwide production and consumption of energy. This shift is disruptive to traditional sources of energy, but it also presents a compelling and long-lasting investment opportunity for the companies and industries positioned for the change.

  • Significant growth potential as the shift to a cleaner energy mix accelerates
  • Rapidly falling costs are the key driver of future growth
  • Broad based policy support continues to underpin demand

Why Invest in the ALPS Clean Energy ETF?

The fund’s underlying index has a differentiated approach to investing in the sector. First, by narrowing the list of constituents to companies whose primary operations are focused on clean energy, the fund offers more pure-play exposure to the sector. Second, constituents are diversified across the sector offering exposure to the full opportunity set of this transition, and also helps to minimize the risk of investing in a single sub-segment. Lastly, focusing on U.S. and Canadian based companies helps to further minimize the risk of investing in a global industry by reducing risks related to foreign holdings, including currency exchange rates, financial disclosures, and regulatory and policy changes.

Solar
Wind
Efficiency/LED/Smart Grid
Biomass/Biofuel
Hydro/Geothermal
EV/Storage
Fuel Cell
  • Solar

    While harnessing energy from the sun has been around for several decades, the solar photovoltaic (PV) industry has only recently taken off, and still accounts for only a small amount (0-5%) of electricity generation. While there is some power generation from solar-thermal technology (which concentrates sunlight using mirrors) the majority is still from solar panels arranged together to generate power through the PV process. Solar panels convert sunlight into electricity and the solar supply chain encompasses everything from panel production to installation, project development, and asset ownership. Once on the ground, solar panels produce no pollutants like other power plants and require very little maintenance.

  • Wind

    Every day the wind blows is an opportunity, and the several-hundred-foot-high wind turbines being installed by the wind industry aim to capitalize on the kinetic energy potential from changes in the weather. The wind industry is the most expansive renewable energy sector behind Hydro and continues to be one of the largest sources of new power generation worldwide (along with solar). Companies involved in wind encompass everything from the blade and tower production to full service installation, maintenance, project development, and asset ownership.

  • Efficiency/LED/Smart Grid

    While the trend since the start of the electricity age has been increasing usage, consumers have started to shift the trend over the last several years towards more efficiency. Light-Emitting-Diode (LED) and Smart Grid are two key ways to play this long term trend in electricity usage. LED’s are the key component in most light-producing devices these days and produce the same amount at a fraction of energy use and a similar cost. Smart grid consists of monitors, controls, software and other technologies working together to respond to rapidly-changing electric-grid dynamics affected by changes in usage and production from renewable energy. Collectively, these new technologies represent an unprecedented opportunity to move the energy industry into a new era of reliability, availability, and efficiency.

  • Biomass/Biofuel

    Biomass and biofuel represent the opportunity of growing plants and other renewable materials to source energy.  Biofuels (ethanol and biodiesel) are already being used to power cars today and support farmers while using less fossil fuels in the process. Biomass encompasses the more productive use of scrap material that might otherwise end up in a landfill (municipal waste) or sustainably harvested non-food crops (wood pellets) for electric power generation.

  • Hydro/Geothermal

    Hydro and Geothermal are the slow and steady contributors to the renewable energy transition. Hydropower to create electricity has been around for more than a century and remains largely the same – using water flowing downhill to spin a turbine. Geothermal harnesses the power of the earth’s core energy producing heat to do the same. While wind and solar technology is rapidly evolving and ramping, hydropower and geothermal are relatively mature with a slower growth profile. However, both hydro and geothermal provide unique benefits to the power system with a steadier production profile versus more intermittent renewable generation (solar and wind).

  • EV/Storage

    Electric vehicles (EV’s) represent perhaps the most fundamental change in transportation since the horse and buggy became obsolete. While the majority of cars and trucks produced still use traditional internal combustion engines, there are more electric vehicles produced every day, and almost all major car companies have an electric offering or plans to rollout electric models in the near future. Electric vehicles are also a key catalyst for the expansion of energy storage technology like lithium batteries, although energy storage more broadly includes a host of other emerging technologies. Increasingly, storage will be used not only in transportation but also in stationary storage as a way to stabilize the electric grid and optimize renewable electricity generation like wind and solar. EV/Storage encompasses the full supply chain of EVs and storage solutions along with the infrastructure required to deliver them (charging networks).

  • Fuel Cell

    Fuel Cells use chemical interactions to produce energy, somewhat similar to a regular battery. While batteries store chemicals in one package, a fuel cell is often for a larger-scale purpose and stores chemical reactants separately and often uses hydrogen as a reactant. Because Hydrogen is often used for fuel cell reactions water is produced – a more environmentally friendly emission. This emerging segment has numerous potential applications including everything from automotive to stationary storage and portable power generation.