Wind energy exchange traded funds (ETFs) have taken some lumps this year, and it might get worse for the industry. Orders from Europe and the U.S. have been put on hold as deficit-burdened countries decide if it is the right time to be throwing millions more out there for alternative energy.
Spain recently diminished subsidies for renewable energy as a result of the government’s new stance on fiscal austerity, reports Andrew Ward for The Financial Times. Meanwhile, legislation to expand clean energy has been sidetracked. Analysts also point to cheap natural gas as a factor against costly renewable tech. [Green ETFs Get a Boost from Washington.]
Last year, global wind power capacity grew by 31.7%. China is gaining ground as a world leader in wind power, accounting for more than a third of growth in global wind power capacity. But financial problems here and overseas could lead to slower growth in the sector.
Nevertheless, wind energy plays for the long-term makes sense since energy usage is continuously on the rise, remarks Aaron Levitt for Investopedia.
As energy comes to our homes from renewable energy providers, there is a power inverter industry converting the DC power generated to AC power we use at home. The solar inverter market is projected to expand to $12.0 billion by 2014 from $3.1 billion in 2008. [Utility ETFs for Growing Energy Demands.]
For more information on wind energy, visit our wind category. These ETFs are below their 200-day moving average. No worries, though: sign up for alerts and be notified when a trading signal is reached!
- PowerShares WilderHill Clean Energy Portfolio (NYSEArca: PBW)
- PowerShares Global Wind Energy (NASDAQ: PWND)
- First Trust Global Wind Energy (NYSEArca: FAN)
- First Trust NASDAQ Clean Edge Smart Grid Infrastructure (NASDAQ: GRID) holds some energy inverter companies.
Max Chen contributed to this article.
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.