Predictions of a Democrat victory in the upcoming US elections have prompted investors to hit renewable energy stocks in force.

Potentially trillions in renewables-focused, government-led spending could be coming the US’ way if Joe Biden and the Democrats take the White House.

This has prompted a “green wave” in investment, mirroring a recent European surge in renewables following the EU’s commitment to sustainable energy.

Joe Biden has promised to set a US goal for net-zero emissions by 2050. This counters President Trump’s plans to take the US out of the Paris Climate Change Accord.

BofA Global Research said last week in its weekly flows report that the surge in solar exchange-traded funds (ETFs) reflected investors’ expectations for a “blue wave” on the Nov. 3 election (blue being the colour most closely associated with the Democratic Party).

Some major surges have occurred on companies pushing ahead with clean power and energy generation projects and products.

For instance, the Invesco solar ETF has climbed 150% year-to-date. This is nearly double the rise of the index that tracks the the FAANG+ basket of technology giants that have led this year’s stock market bounceback.

NextEra exceeded the market value of oil giants Exxon Mobil and Chevron last week. The oil giants have been the most-valuable energy companies for several decades, so this is a major shift.

Danish wind-turbine maker Vestas is up 62% this year, while regional rival Siemens Gamesa is up 59%. A basket of European renewable energy stocks – which also includes these two – is up 68% year-to-date.