Investing in Green Technology

The transformation to a green world is an ongoing megatrend that affect our lives and the investment environment for years to come. To make this transition, we need to develop green technology (green tech). These products enable the transition to a sustainable world, and some examples of such products are solar cells, batteries, and fuel cells. ​

​To accelerate this development, it is necessary to invest in this area to reward the best companies and products. By investing in green tech, you contribute to the acceleration of this transition.

Types of green technology investment funds

There are different types of green technology investment funds. On the one hand are actively managed equity funds investing in green technology companies, on the other hand are passively managed ETF funds that provide an index type investment to the space. The common denominator being that they provide investors with exposure to companies that, among other things, reduce energy consumption, facilitates energy storage and contribute to reduced emissions. Green tech investments are sometimes referred to as sustainable investments.

Benefits of green tech investments

Green technology companies are at the heart of the green transition developing products and services for production of environmentally friendly energy, reduced energy consumption and storage. By investing in green technology and saving in green investment funds, the investor contributes to the acceleration towards a greener economy.

Investing in green technology can generally be considered a good investment, but there are risks involved. There is a lot of innovation in the space which makes it important for an investor to do research to understand the risk profile of the green tech investment. There are multiple strategies that can be used to reduce the risk. One of them is diversification between different green tech investments. Another strategy is to invest in a managed fund where you pay a fee to have an expert managing a portfolio of green tech companies for you.

How to invest in green technology?

There are several different ways to invest in green tech: ​

  • Shares - Buy shares in the companies that create green tech products.

  • Green Technology Fund - Green technology investment funds refer to portfolios of equities focusing on green technology. There are different types of funds. When you invest in a fund, you pay a fee for an expert (fund manager) to select the underlying assets that provide exposure to green tech. There are two types of funds:

    Daily traded funds - Often actively managed, which means that an expert reviews the holdings and rebalances at regular intervals.

    Exchange-Traded Fund - A basket of securities that follows an index and is traded like a stock.

Why invest in green technology with AuAg Funds?

AuAg Fonder offers funds that focus on providing exposure to precious metals and elements in green technology. What they have in common is that these assets offer protection against monetary inflation and are necessary in the transition to a green economy – trends that are highly topical today.

AuAg's funds fit well into a portfolio of traditional assets as they have low correlation with equities in particular.

AuAg offers exposure to green technology companies through the AuAg Precious Green Fund. The fund has 60 percent of the fund’s exposure to green tech companies in four different areas; production of clean energy, reduced energy consumption, energy storage/power and extraction of the elements needed for the green transition.

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