Alternative Energy Mutual FundsAs you read through this, you'll see that alternative energy mutual funds are still in their "infancy" and currently there are only a few... ...but keep your eye out, as more and more companies are jumping into this industry and will start being traded publicly very soon! You'll also see more opportunities for mutual fund investing in the renewable energy sector as these companies offer stocks and options for trading.
Well, alternative energy sources are increasingly being recognized as the only ways to create sustainable energy to meet all of our future needs on the planet. This means this "trend" is not just a fad and will not be disappearing anytime soon. Some very savvy investors have been some of the first to recognize this trend, and some of them have been big names (like Richard Branson and Bill Gates, for example). They've had no hesitation in backing alternative energy companies and these alternative energy mutual funds. They (and others like them) appear to be investing for the long-term in these new technologies. Mutual FundsCurrently, in the United States, there are 2 big-name mutual funds that are investing very strongly in alternative energies and the companies that produce and maintain renewable energy systems. The 2 mutual funds are: New Alternatives Fund (NALFX) - Began in 1982: investments in a variety of companies focusing on renewable energy sources, as well as interests in companies focusing on energy conservation and environmental protection. Guinness Atkinson Alternative Energy Fund (GAAEX) - Began 2006: The fund invests in global companies that "derive more than 50 percent of their revenue from alternative energy or alternative energy technology" Exchange Traded FundsThese are not mutual funds, but are actually ETFs (Exchange Traded Funds) that have shares that can be bought and sold: PowerShares Cleantech Portfolio (PZD) PowerShares WilderHill Clean Energy (PBW) PowerShares WilderHill Progressive Energy (PUW) Market Vectors Global Alternative Energy (GEX) First Trust NASDAQ Clean Edge US Liquid (QCLN) Things You'll NeedMake sure you have a solid understanding of all types of alternative energies currently existing and you'll also need a good understanding of where the market is headed. These are 2 essentials for good investing in this sector. If you'd rather not make the investment yourself, you might want to get a good broker or investment adviser. It's also a good idea to be clear about what you need or want as a return on your investment before you decide to invest in a new technology (like alternative energy). Keeping these things in mind, move forward knowing that this industry is the cutting edge of a growing trend to make life better and to make the world a cleaner, better place... Return from Alternative Energy Mutual Funds
|
