While clean energy exchange traded funds (ETFs) may have gotten socked hard in the recent market correction, it doesn’t mean the fad is over. Most sectors are taking a hit these days, and alternative energy is no exception.
The clean energy sector got ahead of itself, green advocates say. Last year, for example, WilderHill Clean Energy Global Innovation Index was up 58% while the S&P 500 gained 3.5%.
In January’s sell-off, the S&P was down 6% while the WilderHill index was down 20%, says Dan Jamieson for InvestmentNews.
Robert Wilder, the founder of WilderShares LLC and manager of the indexes, says areas such as solar power may have been bid up. They rose a whopping 163% last year.
One analyst says that people will support clean energy until the cost goes up too much, and that the promise of the sector is more talk than reality at this point.