“Renewable energy uses natural resources like sunlight, wind, rain, tides, and geothermal heat to produce energy. High oil prices, concerns about global climate change, and the U.S. government’s growing support of renewable energy through legislation has driven the push to commercialize alternative energy sources,” Ron DeLegge Reports From ETF Guide.
“A number of alternative energy ETFs focus on narrow sub-sectors, while others take a more broadly diversified approach. For solar energy stocks there’s the Claymore/MAC Global Solar Energy Index ETF (NYSEArca: TAN) and Market Vectors Solar Energy ETF (NYSEArca: KWT). For nuclear energy stocks there’s the Market Vectors Nuclear Energy ETF (NYSEArca: NLR). For wind powered stocks there’s the First Trust ISE Global Wind Energy Index Fund (NYSEArca: FAN) and the PowerShares Global Wind Energy Portfolio (NasdaqGM: PWND). So far this year, the performance of solar stocks has been flat whereas wind stocks have jumped between 20 to 30 percent in value. Nuclear energy stocks are up almost 15 percent. For a broader industry sector approach, see the PowerShares WilderHill Clean Energy Portfolio Fund (NYSEArca: PBW) or the PowerShares WilderHill Progressive Energy Portfolio Fund (NYSEArca: PUW). Each of these funds cover a range of emerging technologies like biofuels, wind power, hydroelectricity, geothermal power and solar energy,” DeLegge Reports.
“Like most emerging industries, alternative energy is volatile and littered with risks. For instance, PBW gained 58.5 percent in 2007 but gave back 68.87 percent in 2008. Year-to-date, PBW has gained almost 15 percent. So here’s the lesson: If you decide to invest in alternative energy, don’t be naive to the volatile ups and downs. Be aware too that most alternative energy companies have yet to turn a profit. It’s very similar to the good old days in the late 90’s when many Internet startups were all promise and no profits. Some succeeded, but most failed,” DeLegge Reports.
Full Story: HERE