Some Benefits and Drawbacks to Green ETFs | ETF Trends

"Green" exchange traded funds (ETFs) seem to be benefiting from investors’ growing environmental conscientiousness. For example, PowerShares WilderHill Clean Energy (PBW) has been one of the top performing ETFs for the year so far. It’s up 19.8% year-to-date. However, green ETFs can be affected by the demand for traditional energy. Also, some experts worry that the interest in alternative energy funds is outpacing demand and could lead to a bubble in certain sub-industries, reports Farnoosh Torabi for Entrepreneur Magazine.

Pbw_etf_chart_2

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.