Many of 2021’s record ETF launches are ESG-related, but it may not move the needle enough, CEO warns

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3 years ago

October 17, 2021

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The growing supply of environmental, social and governance-related exchange-traded funds won’t be enough to meaningfully mitigate broad issues such as climate change, Van Eck Associates’ CEO says.

“ESG is good as a coherent investment approach on a fund-by-fund basis to make a difference and it’s good signaling, but to put it in perspective, it’s not going to change the end result of where we need to be,” Jan Van Eck told CNBC’s “ETF Edge” this week.

Many of this year’s record number of ETF launches have been ESG funds, with several top issuers launching theme-based versions of their most popular funds:

The SPDR S&P 500 ESG ETF (EFIV), based on the SPDR S&P 500 ETF (SPY)
The iShares ESG U.S. Aggregate Bond ETF (EAGG), based on the iShares’ Core U.S. Aggregate Bond ETF (AGG)
The PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund (EMNT), based on PIMCO’s Enhanced Short Maturity Active Exchange-Traded Fund (MINT)
The VanEck Morningstar ESG Moat ETF (MOTE), based on VanEck’s Morningstar Wide Moat ETF (MOAT)

When it comes to exacting significant change, however, “where the real lift is going to come is from breakthrough technologies” such as drought-resistant farming, van Eck said in the Monday interview.

“It’s really the technology companies and technology investing, whether privately or with public companies, that’s going to really bend the curve here.”

That may be why the CEO says MOTE has a “growthier flavor” than its non-ESG counterpart, with Alphabet, Microsoft, ServiceNow, Applied Materials and Salesforce.com making up the ETF’s top holdings.

Though there may seem to be a surplus of ESG offerings on the market, investor interest should catch up, CFRA’s senior director of ETF and mutual fund research Todd Rosenbluth said in the same interview.

“There’s more supply right now than demand, but the future looks great, we think, for ESG-related products,” he said. “We think we’re going to see more of these products.”

An ESG version of Invesco’s QQQ Trust (QQQ) could launch by the end of the year, Rosenbluth said.

But investors already have a range of options in all corners of the ESG space, he added — clean energy funds such as the iShares Global Clean Energy ETF (ICLN), issues-based funds such as the Simplify Health Care ETF (PINK), which donates a minimum of $100,000 a year in net profits to the Susan G. Komen breast cancer organization, and plays focused on corporate governance such as Engine No. 1’s Transform 500 ETF (VOTE).

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Cramer names oil and natural gas stocks set to do well under Trump

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2 hours ago

November 22, 2024

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Cramer names oil and natural gas stocks set to do well under Trump

CNBC’s Jim Cramer on Friday said companies related to natural gas and oil will thrive under President-elect Donald Trump’s administration and a majority Republican Congress.

“We’re hearing about all sorts of Trump trades right now, and many of these things have made insane moves in less than three weeks, to the point where, actually, they’re feeling precarious to me,” he said. “If you want a sustainable Trump trade, I say bet on the natural gas ecosystem. This is an industry that already had a lot going for it, it just needed some cooperation from the federal government, which it is about to get.”

President Joe Biden’s administration is largely opposed to fossil fuels, Cramer said, and the federal government has worked to block pipelines and paused new liquified gas export authorizations. This dynamic, coupled with a weaker global economy, caused the sector to underperform for much of the year, he suggested. But Trump has shown more favor to the industry, and Cramer pointed out that he tapped prominent oil executive Chris Wright to lead the Department of Energy.

Cramer recommended several stocks in the sector, including energy producers EQT and Coterra. The former is focused on natural gas and recently acquired peer Equitrans, raising the combined company’s valuation to an estimated $35 billion, Cramer noted. He added that Coterra is a good long-term holding and called the company “one of the shrewdest operators in the industry.”

He highlighted pipeline companies, including Energy Transfer and Kinder Morgan, and said he was especially bullish on Enbridge. Enbridge says it transports about 20% of all natural gas consumed in the U.S., and Cramer claimed the Canadian outfit has “strategically located assets.” He also named Cheniere and Sempra, saying the former is the “best play” for liquified natural gas exports.

“Seasonally, this is a good time for the commodity,” he said, pointing out that natural gas itself has climbed since the election. “But I also think there’s some optimism about the future of the industry driving this move.”

Jim Cramer’s Guide to Investing

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Jeep launches Wagoneer S EV lease prices starting at just $599 per month

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2 hours ago

November 22, 2024

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Jeep launches Wagoneer S EV lease prices starting at just 9 per month

Jeep’s first global luxury electric SUV will arrive at US dealerships any day. Despite its $72,000 price tag, lease prices for the 2024 Jeep Wagoneer S EV start at just $599 per month.

2024 Jeep Wagoneer S EV lease prices

After unveiling its first global electric SUV, Jeep’s CEO said the Wagoneer S “marks a new chapter” in its storied history.

Jeep claims the Wagoneer S packs “exhilarating performance.” With 600 hp and 617 lb-ft of torque, the big-body SUV can sprint from 0 to 60 mph in just 3.4 seconds. Its 100 kWh battery pack also gives it a driving range of over 300 miles.

The electric SUV is unmistakably still a Jeep, but it did get several upgrades to distinguish it as an EV. The grille is now enclosed without the need to cool a massive engine, giving it a sporty, more modern look.

Jeep revamped its design with a new illuminated seven-slot grille with ambient cast lightning. It also fine-tuned its profile, adding flush door handles, a rear wing, and integrated fins for better airflow.

The first Jeep Wagoneer S Launch Edition models get exclusive dark accent design elements like 20″ Gloss Black Wheels.

Inside, the electric SUV is loaded with the latest tech and connectivity, including a best-in-class 45″ of usable screen space. The setup includes a 12.3″ center screen and an exclusive 10.25″ interactive front passenger screen.

Jeep already announced that the 2024 Wagoneer S EV will start at $71,995, but now the company has revealed lease prices for the first time.

According to Jeep, the 2024 Jeep Wagoneer S Launch Edition can be leased for $599 per month for 36 months (10,000 miles per year). The deal includes $4,999 due at signing and a $7,500 EV incentive. However, you may want to act fast, as Jeep’s offer is only good until December 2, 2024.

Jeep Wagoneer S vs Tesla Model Y	Starting Price	Range	Lease Price
Jeep Wagoneer S Launch Edition	$71,995	+300 miles	$599/mo
Tesla Model Y RWD	$44,990	320 miles	$299/mo
Tesla Model Y AWD	$47,990	308 miles	$399/mo
Tesla Model Y AWD Performance	$51,490	279 miles	$599/mo

In comparison, Tesla Model Y RWD lease prices start at $299 for 36 months with $2,999 down (10,000 miles). The Performance AWD model starts at $599 per month. In an end-of-year promo, Tesla also offers 3 months of free Supercharging and Full Self-Driving.

Ready to drive off in your new electric SUV? We can help you get started. You can use our links below to view offers on the Jeep Wagoneer S and Tesla Model Y at a dealer near you.

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Caltrain makes history with fully electric trains on SF to San Jose route

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3 hours ago

November 22, 2024

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Caltrain makes history with fully electric trains on SF to San Jose route

Caltrain, the 160-year-old San Francisco to San Jose rail corridor, has ditched diesel and is now fully electric.

This makes Caltrain’s zero-emission service from San Francisco to San Jose the first diesel-to-electric transition in North America in a generation. To celebrate, Caltrain is offering free rides this weekend on its new half-hourly weekend service, and it’s hosting events at every city along the corridor.

The new electric service is also faster and more frequent. During peak hours, trains will run every 15 to 20 minutes at 16 stations along the corridor. Express service from San Francisco to San Jose will take less than an hour, and weekend service will be twice as frequent as before.

Each trainset will have seven cars instead of the previous five to six. The new electric trains accelerate and decelerate faster than the diesel fleet, allowing more frequent stops in the same amount of time.

The trains were built by Stadler US at their facility in Salt Lake City, Utah. After they were assembled, they were sent to a test facility in Pueblo, Colorado. where they were tested at high speeds under numerous conditions as required by the Federal Railroad Administration.

The new electric trains are not just better for the environment; they’re also a big upgrade for passengers. Riders can now enjoy perks such as free wifi, more seat power outlets, and expanded under-seat storage. Plus, the ride is much quieter.

Serving the region since 1863, Caltrain is the oldest continually operating rail system west of the Mississippi. The Electrification Project is fully funded by federal, state, and local partners.

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