Clean energy is a growing sector of the exchange traded fund (ETF) market. The sector is a highly fragmented one with areas to choose from such as renewable energy, power conservation, clean fuels, and fuel cell technology. The PowerShares WilderHill Clean Energy Fund (PBW) holds 42 stocks in a spectrum that’s green and small-cap, and has no more than 4% in a stock. Energy alternatives are here to stay and Brett Steenbarger of Trading Markets.com has a list of reasons.
- Due to the war in Iraq, U.S. citizens will look for energy independence.
- Clean energy is a response to global warming, and may help re-establish ties with ecologically concerned allies abroad.
- The average consumer is well aware of ethanol and hybrid engines-clean energy isn’t just a pipe dream anymore.
- Energy independence takes us out of competition for resources, especially with developing nations.
- Clean energy is American – Republicans and Democrats are making it a priority.
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.