There have been a lot surveys till now that clearly show the dominance of Green Investments in the market and how investors around the world are inclining more towards it. According to FTSE Russell, five of its indexes are more heavily focused on the option of clean energy companies and technologies that already outperformed their broader benchmarks over the last couple of years. This is the reason why investors are more interested towards green investments.
FTSE Russell thinks that an additional 1% investment in green market is very achievable for the investors who have been in mainstream market dominating. In fact, it can actually improve the performance related to the broad benchmark, and has helped the index to return up.
There were a lot of exceptions as well. The first exception was the FTSE All-World ex Climate Balanced Index, which also underperformed the FTSE Index by 1.9 percentage points in just one year.
The analysis also found a lot of factors that were playing a key role in index fluctuation. It was found that FTSE Russell Indexes invested more heavily in environment pertaining stocks. Three other stocks were also there that outperformed their respective benchmark with a wider margin.
The two FTSE Environmental Opportunities Index which consists of about 450 large and mid-cap companies actually derive at least 20% of the total business. That’s actually a huge number. There were a lot anticipations about this stock in the beginning. The operations are now pretty smooth as they are giving pretty decent returns on the investments.
The three smart beta indexes also have some numbers to prove the dominance of these stocks in the market. FTSE Environmental Opportunities & Technology’s 100 indexes had seen a lot fluctuations in the last couple of years, but still they form a huge part of all the environment-friendly stocks. Their performances have been compared with FTSE World Index that consists of large and mid-cap stocks.
So, if you are looking for promising opportunities for investments, then Green investments would be the best option for you, keeping the current stock conditions in mind.