ETF Trends
ETF Trends

Everyone wants to help the environment, and one way of doing that is through investing in alternative energy exchange traded funds (ETFs).

However, good intentions can be misplaced. For example, the hype and push for ethanol-based fuels to replace oil is impractical and has negative environmental effects, according to John F. Wasik of Bloomberg.com. America does not have enough land to supply the amount of corn needed for mass ethanol production. Yet farmers are growing more corn now than in 63 years. As more corn is grown, the crop prices rise and livestock receive less feed.

Rather than invest purely in ethanol despite all its recent praise, Wasik recommends the PowerShares Wilderhill Clean Energy (PBW) or the Market Vectors Global Alternative Energy (GEX). These ETFs give a broader sample of biofuel and alternative energy stocks. PBW is up 27.5% year-to-date, and GEX is up 9.9% for the month, as it launched in May.

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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.