PBW: INVESCO WILDERHILL CLEAN ENERGY ETF
Share-split context: A reverse split was recorded on Oct 23, 2017 with coefficient 0.2. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.
What this ETF is trying to do
The Invesco Wilderhill Clean Energy ETF (ticker: PBW) is an exchange-traded fund that focuses on the clean energy sector. It provides investors with exposure to companies involved in renewable energy and related technologies.
What the numbers show
When looking at this ETF, it is important to understand two different types of returns: price return and total return. Price return only tracks how much the share price changes. Total return includes those price changes plus any cash distributions (dividends) paid out to investors.
Here is what the data shows:
• Year-to-Date (YTD): The price return is -5.30%, while the total return is -3.81%.
• One Year: The price return is -10.33%, and the total return is -8.57%.
• Three Years: The price return is -1.57%, but the total return is 4.36%.
This ETF has a history of "reverse splits." In a reverse split, multiple old shares are combined into fewer new shares. This causes the price per share to rise mechanically. However, this mechanical increase does not restore lost investment value. The performance numbers listed above are already adjusted to account for these changes.
Income and distribution explanation
This ETF provides cash distributions, which are usually paid out on a quarterly basis. The current distribution yield is approximately 2.31%.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash income, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value, which is the actual value of the assets held within the fund. StockValueFinder uses an erosion-risk score to measure this risk.
PBW has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk rather than proof that the fund's value has definitely collapsed.
Top Holdings
The following is a partial list of the ETF's largest holdings. Please note that holdings can change over time.
• BETA (2.78%)
• CADELER AS ADR (2.20%)
• DARLING INGREDIENTS INC (2.17%)
• ITRON INC (2.09%)
• OPAL FUELS INC ORDINARY SHARES CLASS A (2.07%)
• GEVO INC (2.06%)
• ARCHER AVIATION INC CLASS A (1.97%)
• GENTHERM INC CLASS A (1.95%)
• PREFORMED LINE PRODUCTS CO (1.94%)
• ENERGY VAULT HOLDINGS INC (1.89%)
Pros
• The three-year total return is positive at 4.36%.
• It provides regular quarterly distributions.
Cons
• The one-year and year-to-date price returns have been negative.
• There is a "mild" erosion-risk score.
Beginner takeaway
Investors looking at PBW should distinguish between share price movement and total return. While the share price has declined over the last year, the total return (which includes distributions) tells a slightly different story. Additionally, keep in mind that while the fund pays out cash, it also carries a mild risk of price erosion.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | n/a | BETA | 2.78% |
| 2 | CADELER AS ADR | CDLR | 2.20% |
| 3 | DARLING INGREDIENTS INC | DAR | 2.17% |
| 4 | ITRON INC | ITRI | 2.09% |
| 5 | OPAL FUELS INC ORDINARY SHARES CLASS A | OPAL | 2.07% |
| 6 | GEVO INC | GEVO | 2.06% |
| 7 | ARCHER AVIATION INC CLASS A | ACHR | 1.97% |
| 8 | GENTHERM INC CLASS A | THRM | 1.95% |
| 9 | PREFORMED LINE PRODUCTS CO | PLPC | 1.94% |
| 10 | ENERGY VAULT HOLDINGS INC | NRGV | 1.89% |