Clean energy and hydrogen-focused ETFs are showing signs of strain even as Bloom Energy Corp. (NYSE:BE) remains sharply higher for the year, underscoring how single-stock volatility can spill over into thematic ETF performance.
The Tradr 2X Long BE Daily ETF (BATS:BEX) and the Leverage Shares 2X Long BE Daily ETF (NASDAQ:BEG), both leveraged products designed to deliver twice the daily performance of Bloom Energy's stock, rather than broad exposure to the clean energy sector, fell roughly 15% in Thursday trading session. The move came despite both ETFs still posting strong gains over the past five days, up about 12.5% and 10%, respectively. The sudden reversal highlights how quickly risk sentiment can shift in narrowly focused energy funds when a major constituent turns volatile.
Because these ETFs rebalance daily, periods of extreme volatility can lead to outsized losses even when the underlying shares remain higher over longer time frames. This structure helps explain why both BEX and BEG fell sharply, despite still being up double digits over the past five days and more than 130% year-to-date, and Bloom Energy remaining sharply higher for the year.
Bloom Energy's Rally Drives (And Distorts) ETF Returns
Bloom Energy has been one of the most influential names within clean energy and hydrogen portfolios in recent weeks. The electricity generation and hydrogen production company is up nearly 56% year-to-date, fueled by a $2.65 billion agreement with American Electric Power Company Inc (NASDAQ:AEP) for its solid-oxide fuel cells and rising enthusiasm around alternative power solutions.
Momentum accelerated further after Jefferies raised its price target on Bloom Energy to $92 from $53 and boosted its 2026 revenue forecast to $2.9 billion, well above consensus estimates. The stock touched fresh highs on Wednesday before pulling back up to 7.5% in the latest session, a reminder of its extreme price swings.
Volatility Becomes The ETF ‘Tax'
Bloom Energy's shares have logged 79 moves of more than 5% over the past year, according to StockStory, making it one of the more volatile stocks in the clean energy universe. That volatility can overwhelm the diversification benefits of thematic ETFs, especially when a single name accounts for a meaningful share of recent returns.
As Bloom Energy cooled, the impact was magnified at the fund level, where rebalancing dynamics and broad-based selling pressure pushed BEX and BEG sharply lower.
Institutional investors appear more cautious. Joule Financial LLC reduced its Bloom Energy holdings by nearly 39% during the third quarter of 2025, trimming exposure even as the stock rallied.
The sharp swings in BEX and BEG reinforce that while clean energy ETFs offer diversified access to the energy transition, they are not immune to turbulence when one high-flying stock dominates the narrative.
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