After the inclusion of Green energy financing in the list of United Nations Sustainability Goals (SDGs) as SDG 7, the role, importance, and visibility of green financial products have escalated enormously. This paper assesses the utility of green exchange-traded funds (ETFs), in the investors' portfolios for their dual potential of sustainability and diversification. ETFs provide a unique opportunity to construct practically investible portfolios and have long been used as conduits to facilitate project financing. In this paper, we use distinct ETFs based on dirty (conventional) and clean (green) energy products and companies, bonds, equity, ex-energy commodity, and real estate markets to examine the diversification benefits of green energy for a US-based investor. We construct efficient frontiers under different asset allocations and diversification strategies using the Markowitz MVO framework. Our results show that green energy ETFs provide significant diversification benefits and move the efficient frontier upward. In contrast, the portfolio performance deteriorates with dirty energy funds under different asset allocation and diversification strategies. Overall, we find that owing to their risk-return profile, green energy ETFs can be a rewarding alternative to dirty energy for investors in the global energy market.

在将绿色能源融资作为 SDG 7 列入联合国可持续发展目标（SDGs）清单后，绿色金融产品的作用、重要性和知名度大幅提升。本文评估了绿色交易所交易基金 (ETF) 在投资者投资组合中的可持续性和多样化的双重潜力。ETF 为构建实际可投资的投资组合提供了独特的机会，长期以来一直被用作促进项目融资的渠道。在本文中，我们使用基于肮脏（传统）和清洁（绿色）能源产品和公司、债券、股票、前能源商品和房地产市场的不同 ETF 来检验绿色能源对美国公司的多元化收益投资者。我们使用 Markowitz MVO 框架在不同的资产配置和多元化策略下构建有效边界。我们的研究结果表明，绿色能源 ETF 提供了显着的多元化收益，并将有效前沿向上移动。相比之下，在不同的资产配置和多元化策略下，投资组合的表现会随着肮脏的能源基金而恶化。总体而言，我们发现，由于其风险回报状况，绿色能源 ETF 对于全球能源市场的投资者来说可以成为肮脏能源的回报替代品。在不同的资产配置和多元化策略下，投资组合的表现会随着肮脏的能源基金而恶化。总体而言，我们发现，由于其风险回报状况，绿色能源 ETF 对于全球能源市场的投资者来说可以成为肮脏能源的回报替代品。在不同的资产配置和多元化策略下，投资组合的表现会随着肮脏的能源基金而恶化。总体而言，我们发现，由于其风险回报状况，绿色能源 ETF 对于全球能源市场的投资者来说可以成为肮脏能源的回报替代品。