Core Insights - Clean energy has seen a significant rebound, but Perbak Capital Partners has exited its position in the iShares Global Clean Energy ETF, indicating a reassessment of risk-reward dynamics [1][2] Investment Activity - Perbak Capital Partners sold all 482,918 shares of the iShares Global Clean Energy ETF (ICLN) in Q3, with a transaction value of $6.33 million [2] - The ICLN stake previously accounted for 1.4% of Perbak's 13F assets [3] Performance Metrics - As of the latest report, ICLN shares were priced at $16.45, reflecting a 43% increase over the past year, significantly outperforming the S&P 500, which rose about 17% in the same timeframe [3] - The iShares Global Clean Energy ETF has a total asset under management (AUM) of $1.95 billion and a one-year total return of 50% [4] ETF Overview - ICLN provides targeted access to global companies involved in clean energy production and technology, emphasizing index replication for broad sector exposure [5] - The ETF's investment strategy focuses on tracking approximately 100 global clean energy companies, with at least 80% of assets allocated to index constituents [8] Market Context - The exit from ICLN by Perbak Capital Partners suggests a strategic shift towards broader, cyclical exposures rather than concentrated thematic investments, indicating a disciplined approach to portfolio management [10] - Despite the strong performance of ICLN, it remains a concentrated investment vehicle, sensitive to interest rates and policy changes, making it a tactical but potentially volatile long-term investment [11]

Core Insights - The iShares Global Clean Energy ETF (ICLN) provides investors with exposure to international stocks in the renewable energy sector, with over one-third of its $1.8 billion asset base invested in U.S. equities [2][3] - The fund has been operational since June 2008 and has faced challenges in recovering its original share price due to poor timing of its launch [4][22] - ICLN has a semi-annual dividend yield of approximately 1.5%, with a five-year average dividend growth rate of around 13.6% [5][39] Fund Composition - ICLN targets diverse themes in clean energy, including biofuels, geothermal energy, and fuel cells, alongside more recognized sources like solar, wind, and hydroelectric energy [6][7] - The fund's strategic objective is to track the S&P Global Clean Energy Transition Index, focusing on companies transitioning to more sustainable energy production [8][9] Performance Metrics - The fund has experienced a significant turnover rate of 40% annually, reflecting the dynamic nature of the energy sector as it shifts from conventional to renewable sources [18][19] - ICLN has shown a wide tracking error against its benchmark index, with a one-year rate of 17%, indicating potential volatility in performance [19] Market Trends - Global investments in renewable energy projects are nearing $2 trillion annually, almost double the combined spending on new oil, gas, and coal supply [7] - The ETF is positioned to benefit from a global policy shift towards renewables, with significant investments in regions like Europe, North America, and Asia [30][31][32] Investment Suitability - ICLN may appeal to dividend growth investors due to its strong dividend growth rate, despite a lower current yield [39] - Value investors might find the fund attractive given its price-to-book ratio of 2x and trailing P/E of under 16x, indicating potential undervaluation compared to broader indexes [40][41]

Core Insights - Clean energy ETFs have performed well in 2023, with the iShares Global Clean Energy ETF (ICLN) showing a year-to-date increase of 33.3% [2] Group 1: Performance Metrics - The iShares Global Clean Energy ETF (ICLN) tracks the S&P Global Clean Energy Transition Index, reflecting strong market interest in clean energy investments [2] Group 2: Management and Expertise - The profile of the analysis is managed by Manika Premsingh, who leads the investing group Green Growth Giants and has over 20 years of experience in investment management, stock broking, and investment banking [2]