An ETF That Focuses on Clean Energy | ETF Trends

Earlier this morning, we talked about socially responsible exchange traded funds (ETFs). These ETFs are great for the conscientious investor. One of these new ETFs is the PowerShares Global Clean Energy (PBD), which launched in June. The majority of the companies in PBD are international ones, which have been the driving force behind clean energy investment.

PBD tracks the WilderHill New Energy Global Innovation Index. Companies in this index have innovative technologies and services that focus on the generation and use of cleaner energy, conservation, efficiency and the advancement of renewable energy in general, says Carl Delfeld for ETF XRAY. To ensure diversification across the clean energy industry, the index weighs all the companies equally by sector and market capitalization. No single company represents more than 3%.

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