Exchange traded funds (ETFs) that track alternative means of energy have taken advantage of volatile oil prices.
In the last month, several of these funds have put up some nice numbers, including:
- Market Vectors Solar Energy (KWT): up 3.5% in the last month; up 0.7% since inception on April 23
- Claymore/Mac Global Solar Energy (TAN): up 6.4% in the last month; up 7% since inception on April 15
- Market Vectors Alternative Energy (GEX): up 6.8% in the last month; down 7.4% year-to-date
- WilderHill Clean Energy (PBW): up 6.7% in the last month; down 18.9% year-to-date
- Market Vectors Global Nuclear Energy (NLR): up 14.3% in the last month; up 0.6% year-to-date
Since April 29, oil prices have gone up 10.5%.
Solar energy stocks have rallied the most, but fears of lower industry subsidies and an analyst downgrade caused a pullback, reports John Spence for MarketWatch.
Could these ETFs continue to reap the rewards as we search for different forms of energy that don’t take the form of oil or gas? Maybe. Hurricane season began on Sunday, and a strong storm could interrupt oil and natural gas production in the Gulf of Mexico.
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.