FAN Profile
The First Trust Global Wind Energy ETF is designed to track the investment results of the ISE Clean Edge Global Wind Energy Index, which serves as a benchmark for investors seeking exposure to public companies worldwide that are active in the wind energy industry. The fund typically invests at least 90% of its net assets, including any investment borrowings, in the common stocks and depositary receipts that constitute the index. This strategy allows the fund to closely replicate the performance of companies at the forefront of the global wind energy sector.
The index that the First Trust Global Wind Energy ETF tracks includes companies that are actively engaged in various aspects of the wind energy industry, such as wind turbine manufacturing, wind farm development, and the production of wind energy components. To be eligible for inclusion, companies must demonstrate significant involvement in wind energy, ensuring that the fund provides targeted exposure to this growing segment of the renewable energy market.
As a non-diversified fund, the First Trust Global Wind Energy ETF has a concentrated exposure to the wind energy sector, which may result in higher volatility compared to more diversified funds. However, this focus allows investors to capitalize on the expansion of wind energy as a key component of the global transition to renewable energy sources. The fund offers a unique opportunity to invest in companies that are driving innovation and growth within the wind energy industry, providing potential for both financial returns and environmental impact.
The ETF is well-suited for investors who are interested in thematic investing with a focus on clean energy and sustainability. While the concentrated exposure to wind energy presents higher risks, it also offers significant growth potential as governments and corporations worldwide increasingly invest in renewable energy infrastructure. The fund is ideal for investors with a long-term investment horizon who are looking to align their portfolios with the global shift toward sustainable energy solutions.
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