As oil prices and oil-related exchange traded funds (ETFs) have been hitting new highs, more people are using it as proof that alternative energy sources are needed. This causes investors to feel the monetary pinch at the gas pump as well as in the grocery aisle, as petroleum is used to help process, package and transport most of our foods. Some experts suggest that adding a little ethanol to gasoline could go a long way. In fact, by blending ethanol in gasoline today, refiners can save consumers up to 10 cents per gallon and help soften the inevitable rise in gas prices thanks to record oil prices, reports Matt Hartwig for Grain Journal. Unfortunately, not all refiners seem keen on the idea.
A few ETFs that are on board with finding alternative energy sources include PowerShares Global Clean Energy (PBD), the PowerShares WilderHill Clean Energy (PBW) the PowerShares Wilderhill Progressive Energy (PUW), the Claymore/LGA Green ETF (GRN) and the Van Eck Global Alternative Energy ETF (GEX). These ETFs all hold alternative energy stocks or stocks of companies perceived to be "green" in some other way. PBD is up 5.0% for the last three months, having launched in June. Year-to-date, PBW is up 38.8%, PUW is up 19.4% and GRN is up 7.0%. GEX is up 11.8% for the last three months, having launched in May.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.