Since I last covered clean energy mutual funds and ETFs, the sector has seen the launch of two solar ETFs (KWT the Market Vectors Solar Energy ETF from VanEck, and TAN, the Claymore/MAC Global Solar Energy ETF.) Continuing in the tradition of cute ticker symbols, First Trust's new global wind energy ETF is FAN.
I recommend that investors stay away from the (very expensive) green energy mutual funds, and invest either in one of the ETFs, or if they have a few tens of thousands of dollars to invest and are willing to roll up their sleeves a little, they buy a representative sample of the stocks (a "tracking portfolio") held by the mutual funds and ETFs, and save further on expenses.
The Problem with TrackingThe difficulty of tracking portfolios in clean energy for North American investors is that the wind sector is dominated by European companies, which can require considerable knowledge and cost to purchase....MORE
Monday, June 30, 2008
New Wind ETF FAN Cools Off Sunburned Portfolios
From Tom Konrad at AltEnergyStocks: