Why You Need to Invest In This Clean Energy ETF (PBW)

clean-energyAs the price of oil and commodities rise, alternative energy will once again be on every-body’s mind again.  Alternative clean energy will be the way we do business in the future, as we will always need energy to survive.  For this reason, President Obama has put forth incentives for companies and entrepreneurs to invest in this technology. 

One ETF that has exposure to alternative energy is PBW.  The investment PBW seeks results that correspond generally to the price and yield of an equity index called the WilderHill Clean Energy index. The fund normally invests at least 80% of total assets in common stocks of companies engaged in the business of the advancement of cleaner energy and conservation.  This ETF provides a way to tap into the growing alternative energy market without investing all your money in one company.

Jim Stanton reports from Commodity Online “While firms like Exxon Mobil (NYSE: XOM) rake in billions of dollars per quarter from oil, PBW invests almost entirely in experimental, technology-focused “green” companies. And while these guys stand to benefit from higher oil prices just like specific oil companies, their success depends more on regulatory changes, subsidies and a global recognition of the need for alternative energy solutions. When it comes to the alternative energy market, wind, solar, hydroelectric, geothermal, and nuclear power have all received attention over the past couple of years.”

“But when the oil market first began its march towards record high prices, it was the ethanol industry that took center stage and triggered the wider debate over cleaner energy resources. However, the ethanol market faces a battle. Despite the government’s intervention and subsidies for the industry, newer technologies are needed in order to make ethanol more viable – and the industry’s companies profitable. A good example is Pacific Ethanol (NASDAQ: PEIX) – a company that Bill Gates invested heavily in a few years ago, paying $12 a share. Today, the stock trades for just 40 cents,” Stanton Reports.

“When the stock market bottomed out in March and oil prices retested their lows, PBW did the same. Since then, however, PBW has doubled off those lows to the June 10 high of $11.37. This is right around the swing high of $11.40 that it tested back in November before it pulled back to the trend-line drawn off the March lows,” Stanton Reports.

We have included the top ten companies within the fund:

TOP 10 HOLDINGS ( 32.01% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Echelon Corporation ELON 3.14
Ener1 Inc HEV 2.99
Evergreen Solar, Inc. ESLR 3.16
Fuel Systems Solutions, Inc. FSYS 3.68
GT Solar International, Inc. SOLR 3.31
RENESOLA LTD SOL 3.15
SUNTECH POWER HLDGS STP 3.13
Universal Display Corporation PANL 3.1
Valence Technology, Inc. VLNC 3.32
YINGLI GRN ENGY ADR YGE 3.03

Full Story: Here

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