It’s early 2021 & you see Green Energy ETF adverts everywhere.


This must be a sure thing

So you tell your IFA to investigate, but you don’t want fees, so go Passive.

They extract the performance of the largest, a $6bn Global Clean Energy ETF.

“Global & Clean”, perfect.

Your eyes spot the 142% return in 2020 & then 47% pa for 3 yrs, 26% pa for 5 yrs & 18% for 7 yrs.

Wow – all multiples of that pesky Value fund I’m invested in.

No spreadsheet so you don’t appreciate how the 142% in 2020 changed all the numbers across the performance table & took the 7yr from 10% p/a last year to 18% p/a now.

Nor do you care what they own, you just want performance.

You buy at the end of Jan.

It’s 3 months later & you’re down 26%.

not that performance!

You take a closer look & see a Top 10 holding just reported – SolarEdge

Last 1 year:
Revenue -10%
Operating income -54%
EPS -13%
Free cash flow of $15m

Hang on, isn’t the market cap $12bn?

so that’s a 0.1% Free cash flow yield?

Well, only if they paid it out.

And if employees stop exercising options and selling shares – don’t they know about the Democrats’ plan?

And what’s this fund TER of nearly 0.5%?

Meanwhile, how’s that Value Fund I sold to buy this?

Up double digits


Remember, every year is different.

Just buy what makes sense.