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
What?
Remember, every year is different.
Just buy what makes sense.