“The times they are a changin.” Bob Dylan famously stated this almost 50 years ago. Though Bob was referring to something else, when it comes to the environment and energy sources, we are constantly seeing change. It seems like every 100 years there is a shift in the sources of energy we use to get work done. Three-hundred years ago it was firewood. Two-hundred years ago it was coal. One-hundred years ago we witnessed the shift to petroleum and fossil fuels. And now, one hundred years later we see the emergence of alternative energy.
The following ETFs all focus on alternative energy companies. Granted, this sector has been clobbered in the past few years, but with climate change continually becoming a headline in the news, this could be an interesting place to be.
1. PowerShares Cleantech (PZD, Earnings, Analysts, Financials): This alternative-energy ETF requires companies to derive at least half of their sales or operating profits from clean-tech products.
2. PowerShares Global Wind Energy Portfolio (PWND, Earnings, Analysts, Financials): This ETF tracks the Nasdaq OMX Clean Edge Global Wind Energy Index. The Index includes numerous international companies that are manufacturers, developers, distributors, installers and/or users of wind-powered energy sources.
3. First Trust Global Wind Energy (FAN, Earnings, Analysts, Financials): This ETF is based on the ISE Global Wind Energy Index. A security component must be actively engaged in some aspect of the wind energy industry, such as the development of a wind farm, or the distribution of wind-generated electricity. Many of the holdings in this ETF are non-U.S. companies and as a result this ETF contains ADRs, GDRs and EDRs.
4. Market Vectors Solar Energy ETF (KWT, Earnings, Analysts, Financials): This fund aims to replicate the yield performance of the capitalization weighted index Ardour Solar Energy Index. Domestic and international corporations are represented with significant investments in China, the United States and Germany.
5. Guggenheim Solar ETF (TAN, Earnings, Analysts, Financials): This ETF is based on an index (the MAC Global Solar Energy Index) that tracks companies involved in the production of solar power equipment, the production of fabrication products or services and companies that supply the raw materials that are utilized by the solar power equipment producers.
Written by Dale Wannen, Kapitall’s ESG content expert.
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
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Dig Deeper: Access Company Snapshots, Charts, Filings
- PowerShares Cleantech (PZD, Chart, Download SEC Filings)
- PowerShares Global Wind Energy Portfolio (PWND, Chart, Download SEC Filings)
- First Trust Global Wind Energy (FAN, Chart, Download SEC Filings)
- Market Vectors Solar Energy ETF (KWT, Chart, Download SEC Filings)
- Guggenheim Solar ETF (TAN, Chart, Download SEC Filings)
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Thanks for this article. I've been searching for clean energy stocks for a long time. These ETF's are just what I need. I firmly believe in the future of clean energy.