A winter of insane weather, from tons of snow to raging flood waters, has climate change in the crosshairs. The new urgency for alternative energy could be what solar and wind exchange traded funds (ETFs) need to get in gear.
Wyatt Investment Research reports that interest in fuel cell technology is growing so much that it’s giving a serious boost to companies. Case in point: FuelCell Energy (NYSE: FCEL) ended 2010 with a 104% return. Fuel cells are low in pollution, very reliable and generally more efficient than competing technologies, however, the plants are expensive to build. [Why Coming Clean With ETFs Is More Important Than Ever.]
Brian Sylvester for The International Business Times reports that the alternative energy sector has had a rough ride, however, valuations are low for many of the clean energy companies. This can be a big help for the next year and half, as the sector rebuilds momentum. [Investing In Socially-Responsible Themed ETFs.]
Alternative energy ETFs are well off their highs, too – in some cases by as much as 73%. Some of the most beaten-up funds include: Guggenheim Global Solar (NYSEArca: TAN), 73.4% off high; Market Vectors Global Alternative Energy (NYSEArca: GEX), 66.3% off high; and PowerShares WilderHill Clean Energy (NYSEArca: PBW), 62% off high.
The areas most beaten-down are those that tend to bounce back the most in recoveries. If this rule holds true this time around, then clean energy could have a nice ride in store.
Tisha Guerrero contributed to this article.
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.