An exchange traded fund (ETF) that invests in wind-energy companies is up 15% this year while the first U.S. wind farm, to be located offshore, is set for construction this fall.
The federal government has approved a construction and operations plan submitted for the Cape Wind Energy Project, located off Massachusetts’ Nantucket Sound.
Ros Krasny for Reuters reports that there are cultural and environmental impacts that were taken into account before the government approved the project. [Alternative Energy ETFs Continue To Rise.]
The project, which is being developed by Energy Management Inc., calls for 130 wind turbine generators to be arranged in a grid pattern several miles offshore. [Looking At Alternative Energy With ETFs.]
Wind-energy focused ETFs:
- First Trust ISE Global Wind Energy Index Fund (NYSEArca: FAN) FAN leans towards wind-turbine manufacturers and has a large weighting in Spanish companies. Any potential budget cuts in cash-strapped Spain would likely hit renewable-energy subsidiaries. FAN is up 15% year to date.
- PowerShares Global Wind Energy Portfolio (NasdaqGM: PWND) PWND focuses on wind-farm operators. The fund has a larger weighting toward U.S. companies.
- iShares S&P Global Clean Energy Index Fund (NYSEArca: ICLN) Holds some wind farm companies overseas.
First Trust ISE Global Wind Energy Index Fund
Tisha Guerrero contributed to this article.
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