Alternative energy stocks and exchange traded funds (ETFs) have taken a beating with the recent market turmoil, and falling crude prices aren’t helping.

Most alternative energy-focused ETFs are down 50% or more, as the switch to alternative energy has taken a backseat thanks to falling crude oil prices. As oil prices topped $147 a barrel last summer and gas closed in on $5 a gallon, alternative energy saw renewed interest from consumers. Unfortunately, now the sector has a taken a back seat since fuel prices are no longer sky-high.

The Obama administration has made it clear that it aims to reduce our dependence on foreign oil, so once the government takes action on the $15 billion earmark for alternative energy as outlined in the stimulus package, these investments will be the focus, reports Harry Dumash’s Winning Investing.

  • PowerShares WilderHill Clean Energy (PBW): This is best for an all-around approach to the altenrative energy sector, and tracks 51 small-mid size companies involved in the business.

  • Market Vectors Solar Industry (KWT): Solar stocks may have the best chance to gain, as advancements within the solar industry are the most rapid.

  • First Trust ISE Global Wind Energy Fund (FAN): Wind-powered generating equipment is still in its infancy, but this energy srouce has potential and the power to help energy needs.

  • PowerShares Global Nuclear Energy (PKN): 35% of the fund is based in the United States, and the ETF holds 62 stocks that invest globally in the nuclear energy business.
  • 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.