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Wednesday, December 15, 2010

Green Energy ETF's On Your Wish List ?

Then read Tom Konrad's illuminating (pun intended) SEEKNG ALPHA article, 'Identifying the Best Clean and Renewable Energy ETFs', which focuses on the following funds:
  • iShares S&P Global Clean Energy Index ETF (ICLN), which tracks a global index of clean energy companies.
  • First Trust NASDAQ Clean Edge US Liquid (QCLN), which tracks an index of clean energy companies that are publicly traded in the United States.
  • PowerShares Clean Energy (PBW), which tracks an index of US-listed companies engaged in the business of the advancement of cleaner energy and conservation.
  • PowerShares Global Clean Energy Portfolio (PBD), which tracks an index of global companies engaged in the business of the advancement of cleaner energy and conservation.
  • Powershares Cleantech Portfolio (PZD), which tracks a global index of cleantech companies.
  • Van Eck Global Alternative Energy Fund (GEX), which tracks an index of global alternative energy companies
His conclusions :
For traders speculating on short term gains in Clean Energy, the Powershares Wilderhill Clean Energy ETF (PBW) is the best vehicle due to its high liquidity.
For longer term investors, ETFs are my third choice as a method for investing in Clean Energy, after individual stock portfolios and actively managed mutual funds. Mutual funds may cost more, but provide as much --or more-- diversification, and have performed better (even after the higher costs) for as long as most Clean Energy ETFs have been in existence. For investors with the time or an advisor willing and able to work with individual stocks, stock portfolios offer both lower costs and the potential for better performance through better sector allocation and active management.
Interested in more detail ? Check out related articles by Konrad :