ETF Chart of the Day: Wind Energy
October 20th 2011 at 10:26am by Paul Weisbruch, Street One Financial
Two exchange traded funds that likely fly under the radar due to lower daily average trading volumes are in the alternative energy space, specifically the wind energy subsector.
First Trust ISE Global Wind Energy (NYSEArca: FAN) is an ETF that listed in 2008 as did PowerShares Global Wind Energy (NasdaqGM: PWND). Both ETFs are composed of equities that derive revenue from the wind energy industry in the areas of manufacturing, developing, and installation.
FAN is based on an ISE index while PWND tracks a NASDAQ OMX index, and both ETFs have exposure to internationally based companies in the wind energy space. Top holdings in PWND are currently EDPR (11.27%), CLPXF (11.25%), EGPW (10.29%), VWS (9.30%), and HSN (7.40%).
FAN on the other hand is a bit less top heavy, with top weightings of the following: HSN (8.19%), EDPR (7.65%), IBE (7.19%), RPW (7.03%), and VWS (6.25%).
Like many of the alternative energy based ETFs in the marketplace, performance has suffered over the past few years. Recall that we highlighted the Solar Energy sector a few weeks back and pointed out the lagging returns.
That said, since inception, PWND has lost 69.26% and FAN has dropped 72.09%. We point out however that both ETFs have risen from recent lows touched a few weeks back and are challenging their 50 day moving averages on trading volumes that have been slightly above average.
We will continue to watch the sector for confirmation of a potential breakout of the recent range.
First Trust ISE Global Wind Energy
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