Clean Energy ETF

Clean energy ETFs are one of the hottest new entries in the ETF marketplace with over $150 billion in total investments in 2009. These green energy ETF investments fall into three main categories comprising solar, wind, and nuclear energy securities; investors can also select broad alternative energy ETFs that incorporate investments from more than one category.

Solar energy ETFs


Solar energy is one of the oldest and most established green technologies and was utilized by ancient civilizations in their architectural designs. Today, solar energy ETFs provide investors with the opportunity to support the latest cutting-edge advances in passive and active solar technologies while practicing environmental responsibility at the same time. Solar energy ETF investments primarily focus on companies that manufacture solar panels and related materials, but may include research and development companies in the solar energy field as well.

Wind energy ETFs


Due to the ever-expanding global demand for alternative energy sources, wind power has become increasingly popular in recent years. Wind farms have been established all over the world, from the Great Plains of the U.S. to installations in China and Western Europe. Wind energy ETF investments have experienced significant growth as well, increasing by nearly one-third in 2009 alone. As traditional energy supplies continue to shrink while demand for energy grows, wind energy ETFs are well-positioned for future profitability and continued success.


Nuclear energy ETFs


While some investors may not consider nuclear energy investments a suitable addition to alternative energy ETFs, there is much to recommend nuclear energy ETF investments as a wise environmental and financial choice. Nuclear energy ETFs are based on renewable energy sources; in addition, nuclear power stations typically do not contribute significantly to the buildup of greenhouse gases. This factor alone earns nuclear energy investment a place in the ranks of clean energy ETFs.


Broad clean energy ETFs


A number of clean energy ETFs incorporate elements of all three main types of alternative energy investments as well as tangentially related green energy securities. By diversifying across all three sectors, investors can reap the benefits of these high-growth investments while minimizing the risk of major setbacks in any one of the three. As a result, most clean energy ETFs offer at least some diversification across the green energy investment marketplace.

Clean energy ETFs list by category

Solar energy ETFs

  • Claymore/MAC Global Solar Energy ETF (TAN)
  • Market Vectors Solar Energy ETF (KWT)

Wind energy ETFs

  • First Trust ISE Global Wind Energy Index Fund (FAN)
  • PowerShares NASDAQ OMX Clean Edge Global Wind Energy ETF (PWND)

Nuclear energy ETFs

  • Van Eck Market Vectors Nuclear Energy ETF (NLR)
  • PowerShares Global Nuclear Energy Portfolio ETF (PKN)
  • iShares S&P Global Nuclear Energy Index Fund (NLR)
  • iShares S&P Global Nuclear Energy Index Fund (NUCL)

Broad clean energy ETFs

  • Claymore/LGA Green ETF (GRN)
  • First Trust NASDAQ Clean Edge ETF (QCLN)
  • PowerShares WilderHill Clean Energy Portfolio ETF (PBW)
  • PowerShares Global Clean Energy Portfolio ETF (PBD)
  • PowerShares WilderHill Progressive Energy Portfolio ETF (PUW)
  • PowerShares Cleantech Portfolio ETF (PZD)
  • Van Eck Market Vectors Global Alternative Energy ETF (GEX)
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