Alternative energy is the thing, even in the exchange traded fund (ETF) arena. It’s so in right now, in fact, the venture capitalists have poured a record amount of money into the business.
In a report issued by Dow Jones VentureSource, venture capitalists put $3 billion into alternative energy in 2007 – much if it toward products still in development.
Murray Coleman for Index Universe wonders how much room should be allocated to this sector in one’s portfolio, or if they should even be there at all.
Energy overall is down this year. PowerShares WilderHill Clean Energy (PBW) gained 59.7% last year, but year-to-date, it’s down 26.1%. Top holdings, though, include Cree Inc. (CREE, 4.6%) and Applied Materials (AMAT, 4%). Both computer manufacturers that are performing well this year. But do they really fall under the "alternative energy" umbrella?
It’s a good argument for doing some homework, knowing what you own and making sure that a fund you’ve chosen aligns with your personal objectives.
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.