The PowerShares WilderHill Clean Energy (PBW) exchange traded fund (ETF) has been attractive to many investors because of its socially responsible roots. PBW invests in companies that support renewable and cleaner sources of energy and technologies that facilitate cleaner energy. Currently, PBW is up 28.2% year-to-date.
One factor behind PBW’s strong performance, besides environmentally-conscientious investors, could be the increase in solar stocks’ performance earlier this week. Yingli Green Energy Holding, which is PBW’s third largest holding at 3.7%, rose 10.5% Monday, according to the Associated Press. Another PBW holding, Evergreen Solar (ESLR), rose 6.9%. In addition, the ETF’s second-largest holding, Emcore, gained almost 9% late last week. Emcore (EMKR), which makes up 4.3% of PBW, produces solar cells, panels and chips used in the communications industry, the Associated Press reports.
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.