ETF Trends
ETF Trends

ETF Spotlight on First Trust ISE Global Wind Energy Index Fund (NYSEArca: FAN), part of a weekly series.

Assets: $63.4 million

Objective: The First Trust ISE Global Wind Energy tries to reflect the performance, before the fund’s fees and expense, of the ISE Global Wind Energy Index.

Holdings: Top holdings in the fund include Vestas Wind Systems 8.66%, EDP Renovavels SA 8.12%, Iberdrola Renovables 8.05%, Gamesa Corporation Tecnologica S.A. 7.35% and China Longyuan Power Group-H 5.86%.

What You Should Know

  • Top country breakdown includes Spain 29.64%, Germany 15.67%, U.S. 12.41%, Denmark 9.76% and China 6.35%.
  • Companies within the underlying index that provide goods and services exclusively to the wind energy industry make up 66.67% of the index, and companies that are categorized as a significant participant in the wind energy industry, but are not exclusive to the industry, comprise the rest of the benchmark.
  • The tracking index uses a modified market capitalization weighted methodology that separates companies into quintiles based on market cap, with quintiles containing large-caps weighted higher than those of qunitiles containing small-caps, which helps prevent any single company from dominating the whole index.
  • FAN has 59 holdings and has an expense ratio of 0.80%.

The Latest News

  • As nuclear-power stocks experience uncertainty, the alternative-energy sector has seen increased inflows, which experts believe will continue in the coming months. Alternatives usually come into favor when there are natural disasters related to oil and nuclear energy or when pricing gets too high. [2 Direct ETF Plays For Wind Technology.]
  • China recently announced its next five-year plan, which also included a heavy emphasis on renewable energy, more notably in wind and solar energy. [All Eyes Are On Energy ETFs.]
  • Over the last couple of years, developments in wind-turbine generation has come to the point where its competitive prices may become a viable alternative to fossil fuels.

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.