5 Best Energy ETFs: Top Oil, Gas and Renewable Energy Funds

2. SPDR Kensho Clean Power ETF (NYSE:CNRG)

5-Year Performance as of July 28: 195.15%

Next on our list of the best energy ETFs is SPDR Kensho Clean Power ETF (NYSE:CNRG). SPDR Kensho Clean Power ETF (NYSE:CNRG)’s objective is to replicate, before fees and expenses, the overall performance of the S&P Kensho Clean Power Index. This index employs artificial intelligence and a quantitative weighting approach to identify companies contributing to innovation in the clean energy sector, encompassing solar, wind, geothermal, and hydroelectric power. SPDR Kensho Clean Power ETF (NYSE:CNRG) was introduced on October 22, 2018, and currently holds a portfolio of 51 stocks with a total expense ratio of 0.45%.

Generac Holdings Inc. (NYSE:GNRC) is the biggest holding of the SPDR Kensho Clean Power ETF (NYSE:CNRG). Generac Holdings Inc. (NYSE:GNRC) specializes in the design, manufacturing, and sale of power generation equipment, energy storage systems, energy management devices and solutions, and other power products. They cater to residential, light commercial, and industrial markets worldwide. On May 3, Generac Holdings Inc. (NYSE:GNRC) reported a Q1 non-GAAP EPS of $0.63 and a revenue of $887.9 million, topping Wall Street estimates by $0.13 and $37.83 million, respectively. 

Alger Mid Cap Focus Fund made the following comment about Generac Holdings Inc. (NYSE:GNRC) in its Q4 2022 investor letter:

“Generac Holdings Inc. (NYSE:GNRC) is a leading global designer of energy technology solutions, which provides power generation equipment, energy storage systems and other power products serving the residential, light commercial and industrial markets. Notably, the company created the home standby (HSB) generator market and remains the market leader. They also introduced a clean energy storage system solution to the domestic market that was launched in December of 2019. Shares underperformed during the quarter as the company negatively preannounced fiscal third quarter results. citing residential underperformance due to installation capacity constraints for HSB generators, which caused a lag in production. In addition to the HSB weakness, the clean energy business took a hit as their largest storage customer declared bankruptcy. Consequently. These results were well below expectations and caused management to reduce their fiscal 2023 outlook.”