Climate protection is once again a popular topic
When Raiffeisen-SmartEnergy-ESG-Aktien was launched in April 2020, climate protection and the energy transition were hardly popular topics due to the coronavirus pandemic. Today, although COVID-19 still has us firmly in its clutches, governments in many places are combining stimulus and recovery programmes with investments intended to make energy generation greener and to reduce energy consumption. One of the principal strengths of Raiffeisen-SmartEnergy-ESG-Aktien is its broad-based approach to the energy transition. It is rarely possible to tell in advance which providers and technologies will prove successful over the long term. So there is little potential for success in picking THE expected winner. And focusing on a relatively small group of companies or topics would allow investment opportunities to go wasted unnecessarily.
Characteristics of the energy sector
The energy sector is responsible for around two-thirds of all man-made greenhouse gas emissions.
The transition to renewable energy sources and more efficient use of energy represent a key aspect in fighting greenhouse gas emissions, pollution, and global warming. However, the energy transition depends greatly on political decision-making.
The energy sector is highly diversified. It includes everything from electricity producers and enterprises that provide key components for the construction of solar and wind power generation facilities to companies that renovate buildings. Nonetheless, investors should be aware that they are only participating in one sector.
The energy transition will be made or broken by storage technologies. Hydrogen is shaping up as one alternative to conventional batteries and pump storage power plants.
Der Raiffeisen-SmartEnergy-ESG-Aktien
This equity fund invests in around 50 different companies from the energy sector. These can be assigned to three major fields: regenerative energy generation and supply firms, industrial enterprises with a strong focus on the energy transition, and technology companies.
The companies which are selected for the fund meet the strict sustainability criteria of Raiffeisen KAG.
What you should pay particular attention to
Investments in the fund are subject to the risks that are typical of equity markets. Of course, these risks also apply to firms active in renewable energy, efficient energy use, and the associated technologies and components.
The fund exhibits elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time.