XLE vs ICLN ETF Showdown Traditional Energy Meets Clean Energy. Which ETF Is the Better Buy?
XLE's lower costs and higher yields appeal to value investors, while ICLN's global renewable exposure attracts those betting on the energy transition.
Overview
Choosing between State Street Energy Select Sector SPDR ETF (NYSEMKT:XLE) and iShares Global Clean Energy ETF (NASDAQ:ICLN) comes down to a preference for low-cost, domestic fossil-fuel giants versus a global, ESG-screened portfolio of renewable energy developers.
XLE provides a liquid, concentrated vehicle for betting on the traditional energy giants within the S&P 500. Conversely, ICLN offers diversified international exposure to the clean energy transition. This match-up highlights the differences in cost, volatility, and sector focus between traditional and sustainable energy strategies.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield based on the closing prices of July 9.
Source
Originally published at www.fool.com.