When it comes to alternative energy exchange traded funds, solar ETFs usually command the most attention, but investors may want to acknowledge wind energy funds as near-term trading ideas.
For instance, the PowerShares WilderHill Clean Energy Portfolio (NYSEArca: PBW) and First Trust NASDAQ Clean Edge Green Energy Index Fund (NasdaqGS: QCLN) both include broad exposure to U.S. clean energy companies.
Additionally, the First Trust Global Wind Energy Fund (NYSEArca: FAN) focuses on the wind industry but it is slightly more diversified with a global scope.
Some market observers argue that the lighter wind should be a catalyst for renewable energy investors to gain exposure in diverse places. Investors should look beyond a single firm or region in the nascent industry.
“Wind is in a boom period in the States. For the first time, installed wind capacity was greater than hydroelectric, according to the American Wind Energy Association. The American Wind Energy Association says there are wind farms in 41 states – and one of the most recent was developed in North Carolina,” according to OilPrice.com.