Take a position on the Green index

Looking to increase your exposure to the sustainability sector? Take a position on green stocks with CFDs and trade the top 30 green companies in the US.

  • Trade with margins as low as 20%
  • Go long or short
  • Enjoy spreads from 6 pts

What is the Green index?

The Green index 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:
1
Market hours:
1.3 –05.00 SGT
Spread:
20 pts

Why trade the Green 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 agreements to reduce greenhouse gas emissions. There is plenty to suggest green energy has long-term growth potential. For example, energy industry stakeholders are investing in next generation technologies such as green hydrogen, advanced batteries, and other forms of long-duration storage.

New and emerging green technologies can provide zero-carbon electricity, an easing of grid congestion, and the facilitation of solar and wind integration into the grid.

Solar in particular could be set for a shake-up in 2022. For example, community solar projects in the US are gaining traction with 22 states, plus Washington DC, introducing programs that allow residential customers to enjoy the benefits of shared solar power.

While 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.

Keep on top of the fundamental and technical drivers that move markets with our news and analysis section.

The performance of green stocks

Green stocks enjoyed bumper performances in 2020 as oil and gas companies suffered plunging demand due to the pandemic. That trend reversed in the early months of 2021 as industry picked up again, and reliance on “dirty” energy returned.

The outlook today 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. However, as more initiatives in the green sector gather steam, infrastructure development picks up, and supply chain strategies evolve, green stocks may continue to gain gravitas.

As ever, traders need to stay up to date with the latest news and discourse, and our own market analysis pages can provide important information to help you make educated choices regarding market direction.

How to trade the Green index

The 30 different companies listed in the 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.

What's the difference between the Green index and the ESG Index?

Whilst there is much environmental crossover between green and ESG focused companies, the main difference between them is that companies with a green focus have an interest in climate friendly alternative-energy sources and other environmental efforts as their prime feature.

Meanwhile, the ESG index focuses on companies that drill down into other human aspects including social policies, diversity, and workers' treatment.

Learn more about the ESG index.