After The Crash, CNRG Starts 2026 With A 40% Rally

Core Viewpoint - The SPDR S&P Kensho Clean Power ETF (CNRG) has seen a significant rally of 41% in 2025, indicating renewed interest in clean energy, particularly driven by the electricity demands of AI data centers [1][4]. Group 1: Investment Focus - CNRG focuses on companies involved in the clean power infrastructure, with 49% of its allocation in industrials, making it a concentrated investment in US-based manufacturers and project developers like Bloom Energy and Fluence Energy [2]. - The fund aims to capitalize on the increasing electricity demand from AI data centers and tech companies committing to net-zero goals, which is expected to drive revenue growth for the companies within its portfolio [2][4]. Group 2: Performance and Volatility - Despite the 2025 rally, CNRG still trades 14% below its 2020 peak, highlighting the volatility and policy sensitivity of the clean energy sector [5]. - The fund has a 0.72% dividend yield, which is not appealing for income-focused investors, and a 0.45% expense ratio that is reasonable but not particularly low [5]. Group 3: Investor Suitability - CNRG is not suitable for retirees or conservative investors due to its negligible yield and high volatility, making it more appropriate for growth-oriented investors willing to accept risk [6][8]. - For those seeking broader diversification, the iShares Global Clean Energy ETF (ICLN) is recommended as a less volatile alternative, offering greater liquidity and exposure to international markets [7].