From NASDAQ: 2024-05-08 04:00:00

The passing of the Inflation Reduction Act in 2022 was actually the biggest green energy subsidy in history, with estimates ranging from $780 billion to $1.2 trillion. Consumers and businesses across various end markets will benefit from the bill’s tax credits, offering potential investment opportunities in green energy companies.

The Inflation Reduction Act offers subsidies for new green energy equipment like solar panels and electric vehicles for individuals and businesses. The First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) is a diverse ETF that provides exposure to companies benefiting from the bill. Despite underperformance in recent years, the ETF’s holdings are well-positioned for the energy transition.

While the QCLN ETF has had lackluster performance in recent years, a turnaround could be on the horizon due to lower valuations, easing interest rate pressures, and ongoing IRA tax incentives for green energy projects. Contrarian investors may find the QCLN ETF worth considering for potential high returns in the future.

Investors considering the First Trust Nasdaq Clean Edge Green Energy Index Fund should be aware of other potential investment opportunities identified by The Motley Fool Stock Advisor team. While the ETF has potential for growth, exploring other stock picks recommended by experts could lead to significant returns in the long term. The key is to diversify investments and consider all options before making a decision.



Read more at NASDAQ: The U.S. Is About to Spend Hundreds of Billions on Clean Energy Subsidies: 1 Amazing ETF to Reap the Benefits