An ideal way for investors to gain exposure to leaders in the green technology industry is to ProShares Cleantech ETFs (NYSEARCA:CTEX). According to data from ProShares, the fund “invests in companies involved in the development and construction of green technologies that could power the future in areas such as hydropower, solar, wind and geothermal energy.” CTEX stock is therefore a good investment for those who wish to gain exposure to many types of green energy.

The benefits of clean technologies, according to Goldman Sachs (NYSE:SG), could bring in $ 1 trillion to $ 2 trillion in funds for green infrastructure investments each year. Clean technologies can also create between 15 and 20 million jobs worldwide.

In 2021, the climate change business is starting to catch up with the emotions in the climate change debate. And that makes it a good time to invest in the clean energy sector. Clean energy includes solar and wind stocks. But it also includes related sectors such as electric vehicle charging and other renewable energy sources, such as renewable natural gas (RNG).

Skate to where the puck goes

An often overused and misused cliché is “skate where the puck movesâ€. However, in this case, I think it is an appropriate expression. For at least 20 years, the world has struggled to develop clean energy solutions. But that hasn’t extinguished the need for fossil fuels.

Even the most ardent advocates of climate change knew that moving away from fossil fuels would never be like flipping a switch. Sometimes companies had to move on while they waited for the technology they needed to develop. The transition has been slow.

Over the past decade, global governments have forced the issue. For example, according to a BloombergNEF Global emissions are forecast to fall by 30% from 2019 to 2030 to meet the Paris Climate Agreement’s goal of net zero energy emissions by 2050.

Switching to electric vehicles alone will not allow the world to achieve this goal. And that is why the rush to develop renewable energy sources such as solar, wind and hydrogen is launched.

CTEX Stock takes a holistic approach

Wind and solar have dominated the transition to clean energy. But as the recent surge in natural gas prices proves, things can change quickly in the energy sector. The Cleantech ETF is ideal for investors who don’t want to have to choose the best company from each industry.

The ProShares Cleantech ETF tracks the S&P Kensho Cleantech Index. According to the fund’s prospectus, companies in this index “must produce products or services related to clean energy technology, as identified by the automated analysis of the index provider of recent deposits issued by the companies â€.

Within each category, titles are given equal weight. However, stocks defined as core securities are overrepresented compared to those designated as non-core securities.

US companies represent over 75% of the fund. But CTEX’s stock also includes non-US companies based in both developed and emerging markets. The fund is replenished annually and rebalanced semi-annually.

Currently, the fund owns the shares of 29 companies. Not all types of clean energy are always represented. At the time of writing this article, the fund was heavily weighted in favor of some of the biggest names in the solar industry. And You’re here (NASDAQ:TSLA) is also one of the top ten holdings of the fund.

CTEX has an annual expense ratio of 0.58% or $ 58 per $ 10,000 invested.

At the time of publication, Chris Markoch had (directly or indirectly) no position in any of the titles mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.

Chris Markoch is a freelance financial writer who has covered the market for seven years. He has been writing for InvestorPlace since 2019.