This Energy ETF Is Offering The Most Potential Among It’s Peers

choices“The smart money is bored with energy ETFs but it’s betting on gold stocks. In reviewing the prospects for crude oil, those exchange-traded funds that focus on energy are not offering much potential at the present. Between funds that hold energy company stocks and those that provide varied ways to play the commodities–long, short, leveraged and not-leveraged–there are more than two dozen and a half candidates to draw from. Some of these do not yet have much market seasoning, and nearly all are influenced by the blowoff in crude prices in the last year-plus,” Peter Way Reports From Forbes.

Way goes on to say, “The only ETF now meeting our investment hurdle, the Market Vectors Alternative Energy Fund (GEX), is one with those kinds of constraints. We only have one year of forecasts to observe, and while the market-makers have demonstrated that they know when it is cheap, there is no real negative-side experience to provide risk-aversion guidance.”

“GEX has had but five position closeout opportunities in that year, and while they averaged +12% gains in a month and a half each, the 140% annual rate rests on a very small sample. We would cheer, but wait to act,” Way Reports.

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The investment (GEX) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Ardour Global Index. The fund normally invests at least 80% of total assets in stocks in proportion to their weightings in the index. It invests at least 30% of assets in securities of non-US companies located in at least three different countries. The fund is nondiversified.

TOP 10 HOLDINGS ( 51.97% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Cree, Inc. (CREE) 6.1
First Solar, Inc. (FSLR) 6.66
GAMESA (GAM.MC) 4.31
IBERDROLA RENOVABLES (IBR) 4.96
Itron, Inc. (ITRI) 3.94
Kurita Water Industries Ltd. N/A 4.47
MEMC Electronic Materials, Inc. (WFR) 4.27
Osterreichische Elektrizitatswirtschafts AG N/A 4.01
RENEWABLE ENERGY (REC.OL) 3.81
Vestas Wind Systems (VWS) 9.44

Chart for Market Vectors Glb Alternatve Energy ETF (GEX)

 

 

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