There is no denying that nearly any ETF with the alternative or clean energy labels is among this year’s best sector funds. The proof is in the pudding. Of the top-10 non-leveraged sector ETFs this year, at least five have “solar,” “wind” or “alternative energy” in their names.
Stunning upside delivered by alternative energy ETFs has been led by the Guggenheim Solar Energy ETF (NYSEArca: TAN), which is up 39.5% in the past three months and is flirting with new all-time highs. One technical analyst recently pointed out that despite TAN’s amazing run, it could offer upside to the $40 area. [Solar ETF Aims for All-Time High]
The clean energy sector has also gathered support based on high gas and oil prices. Further issues surrounding global warming and high levels of carbon and greenhouse gas emissions have continued to boost the sector. Additionally, some ETFs like the Market Vectors Global Alternative Energy ETF (NYSEArca: GEX), have powered higher due to significant exposure to Elon Musk’s Tesla (NasdaqGM: TSLA), the electric car maker whose shares have risen more than fivefold this year. [This ETF May Have the Perfect Combination]
With some of the gains posted by alternative energy ETFs this year, additional significant upside may appear hard to come by, but the opposite may actually be true as at least one strategist sees a pair of clean energy funds – the $75.6 million PowerShares Cleantech Portfolio (NYSEArca: PZD) and the $76.1 million PowerShares Global Clean Energy Portfolio (NYSE: PBD) – rallying in the fourth quarter.