CNRG and PBW Both Track Clean Energy but One Fell 61% in the Last Downturn While the Other Lost 23%

"CNRG tracks the S&P Kensho Clean Power Index and concentrates on companies that physically produce clean electricity: solar, wind, hydro, and geothermal generators alongside the utilities that own them. The implicit bet is that decarbonization shows up as megawatts on the grid, financed at a sensible cost of capital. That bet is rate-sensitive. With the 10-year Treasury at 4.46% and the 30-year at 5.03%, discount rates on long-duration generation cash flows are heavy."

"PBW tracks the WilderHill Clean Energy Index, which spreads across the full value chain: EV makers, battery developers, hydrogen and fuel-cell names, smart-grid hardware, and efficiency tech. Many constituents are small-cap, pre-profit, and highly correlated to risk appetite. The bet is on technology adoption curves rather than utility ratebases. That makes PBW a growth proxy as much as a clean energy fund."

"From January 4, 2021 to December 30, 2022, CNRG fell 23.12%. PBW fell 61.22% over the same window. The five-year picture still reflects that wound: PBW is down 35.74% while CNRG is up 25.89%. PBW wins on the way up. CNRG protects on the way down."

"PBW is the better fit for an investor who wants leveraged exposure to risk-on clean tech and can tolerate the kind of 60%-plus drawdown the fund has already delivered once this decade. CNRG fits an investor who wants clean energy as an infrastructure allocation: lower beta, utility-heavy, tied to electricity dema"

CNRG tracks the S&P Kensho Clean Power Index and focuses on companies that generate clean electricity, including solar, wind, hydro, and geothermal, plus the utilities that own them. Its performance depends on decarbonization translating into grid megawatts financed at reasonable cost of capital, making it sensitive to interest rates. PBW tracks the WilderHill Clean Energy Index and covers the full clean energy value chain, including EV makers, battery developers, hydrogen and fuel-cell companies, smart-grid hardware, and efficiency technology. Many holdings are small-cap and pre-profit, so results are tied to risk appetite and technology adoption rather than utility ratebases. PBW has higher returns but larger drawdowns, while CNRG has lower drawdowns and more defensive behavior.

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