People have started investing in clean energy ETFs, what are they basically?

Clean energy ETFs are among the top performers this year. Clean-energy space can mean focusing on actual generators of sustainable electricity, but it can also mean holding shares of various electrical equipment and component makers, semiconductor manufacturers, and traditional industrial and energy companies with a newer focus on sustainability. It can even mean electric vehicle manufacturers. Half of the clean-energy ETFs hold shares of Tesla Inc, which can also partially explain the robust performance.

The cost of renewable energy generation has been falling in recent years with continued technological innovation, and that has started changing the competitive balance between clean and traditional energy. Another reason underpinning the strong performance of clean energy ETFs are rising odds of a Biden victory, as he has pledged to spend $2 trillion to combat climate change.