Volatility and possible disruptions to oil supplies in the Middle East coupled with heightened scrutiny over nuclear reactor projects have directed the world’s attention to alternative energy sources, which has become a major boon for clean tech investments like wind exchange traded funds (ETFs).
As nuclear-power stocks experience uncertainty, the alternative-energy sector has seen increased inflows, which experts believe will continue in the coming months. Alternatives usually come into favor when there are natural disasters related to oil and nuclear energy or when pricing gets too high. [Looking at Alternative Energy with ETFs.]
China recently announced its next five-year plan, which also included a heavy emphasis on renewable energy, more notably in wind and solar energy, reports Max Blythe for Forbes. Germany, also known as a leading contender in the renewable energy game, has stopped operations of a few old nuclear reactors and is pressing on with more renewable energy ventures.
Over the last couple of years, developments in wind-turbine generation has come to the point where its competitive prices may become a viable alternative to fossil fuels. Additionally, President Obama has been a major proponent of green technology, and he is advancing talks on cooperation in green energy as he visits Latin America.
Potential wind ETF investors may look at two direct options:
- PowerShares Global Wind Energy (NASDAQ: PWND). PWND focuses on wind-farm operators. The fund has a larger weighting toward U.S. companies, which leaves it vulnerable to the whims of Congress.
- First Trust Global Wind Energy (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.
For more information on the wind industry, visit our wind category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.