Trade the Green index

Take a position on green stocks:

  • Trade the top 30 green companies in the US
  • Index ranked and weighted by market cap
  • Margins as low as 5%
  • Go long or short
  • Spreads from 6 pts

Is the future painted green?

Companies whose prime focus is investment in environmentally friendly alternative-energy sources feature on this index. Green energy has been of global importance for many decades now, though the pace of movement is slow and can be unpredictable.

Global energy demand is forever on the rise, while many administrations are signing up to various agreements to reduce greenhouse gas emissions. There is plenty to suggest green energy has long-term growth potential.

One thing to bear in mind: the majority of green companies rely heavily on government subsidies. These injections of capital are volatile – they can suffer as governments grapple with economic slowdowns, and when the cost of conventional energy sources, like oil and natural gas, stays low.

Trade the Green index

Quick facts

This is an index designed to measure the market performance of the top 30 North American publicly listed companies investing in alternative energy sources.

Constituents are ranked and weighted according to their market capitalisation, and the index is revised quarterly on the third Friday of every March, June, September and December after market close.

  • Number of constituents: 30
  • Market hours: 14:30 – 21:00
  • Spread: Fixed (6 points)

Judging the temperature: Green stocks in focus

Green stocks enjoyed bumper performances in 2020 as oil and gas companies suffered plunging demand due to the pandemic.

That trend reversed itself in the early months of 2021 as industry slowly got its feet back on the floor, and reliance on “dirty” energy picked up.

The outlook is mixed, with some analysts suggesting portfolios should have some long-term exposure to green stocks and others feeling investors are still paying too much to buy stakes in these enterprises.

As ever, traders need to be plugged into the news and discourse, and our own market analysis pages can provide important information to help you make educated choices regarding market direction.

NEWS & ANALYSIS

How to trade the Green index

The 30 different companies listed in our Green index all trade on North American stock exchanges. The biggest ones command around 10% of the total index with the smallest around 1%.

You can go long on or short (buy or sell) the Green index, based on your judgement of the market on technical data, fundamental analysis, or as a reaction to news events.

As with all the other trading instruments available at City Index, our charts depicting the Green index are easily accessibly on any device, and come with technical indicators and drawing tools as standard.

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