Bloom Energy's Wild Ride Is Stress-Testing Clean Energy ETFs
Clean energy ETFs are under pressure as Bloom Energy's stock volatility impacts their performance. Despite Bloom Energy being up 56% year-to-date, ETFs like Tradr 2X Long BE Daily ETF and Leverage Shares 2X Long BE Daily ETF fell about 15% in a recent trading session. This highlights how single-stock momentum can distort ETF returns, especially when a major stock experiences extreme price swings. Institutional investors are becoming cautious, with some reducing their holdings in Bloom Energy, indicating the risks associated with concentrated investments in thematic ETFs.
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