10 Worst-Performing Industries in 2024

1. Clean Energy: 

iShares Global Clean Energy ETF: -15.4%

It might be surprising to see clean energy on the list. The industry had been growing rapidly, especially during the 2020-2022 period. A huge catalyst for the growth was the declining cost of solar and wind energy generation that was making them more competitive against fossil fuels. In fact, in 2020, a combined 162 GW of the renewable energy capacity added had electricity prices lower than the cheapest source of new fossil fuel capacity. This renewable capacity was 62% of the total added that year.

In addition to rapid capacity growth and cost decline, clean energy industry also enjoyed the broader techno-optimism tailwinds of 2020-22. That is, until the interest-rate hikes really started hurting the industry in the mid 2022 period. The Global Clean Energy ETF by Blackrock has shed 38% of its value since March, 2022.

As of so far in 2024, solar has suffered worse than the wind energy industry, with Invesco Solar ETF (NYSE:TAN) down 25.5%, while First Trust Global Wind Energy ETF (NYSE:FAN) is up 3.7% during the same time.

With the ongoing interest rates’ policy easing around the world, and especially in the US, the clean energy industry is expected to have a more bullish outlook in the coming years. This is in addition to its long-term positive outlook being solidified owing to decreasing costs, improving technology and global carbon goals. Straits Research projects a growth rate of 9.47% for the industry during the period 2024-2032.

While we acknowledge the potential of clean energy as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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