Wind turbines in the London Array offshore wind farm, North Sea, near England, United Kingdom. Getty Images
Renewable energy stocks have been among the worst-performing stocks this year as high interest rates dampen growth.
The S&P Global Clean Energy ETF is down 34 percent year-to-date, and companies like SolarEdge have lost 70 percent.
Nevertheless, investments in clean energy continue to grow and investors expect performance to improve.
Despite the growing desire for an accelerated global transition to renewable energy, stocks in this sector are significantly underperforming the broader market. In fact, they are among the worst performers this year.
Funds that track stocks from the sustainable energy sector will largely be in the red in 2023. The S&P Global Clean Energy ETF and the iShares Global Clean Energy ETF have fallen more than 30 percent since January. Companies like SolarEdge and Enphase Energy are now down 73 percent and 67 percent, respectively.