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It has been said over and over that the environmentally-friendly, "green theme" for investing is the green wave of the future for making positive returns as an investor. Socially-responsible Investing (SRI) is not new, and there is over US $2.7 trillion (or so we are told) invested in the SRI mega-sector. Let's mainly focus here on the areas of alternative energy and alternative power generation (a.k.a. "sustainable" power). This includes biofuels, solar power, wind power, geothermal energy, and other green-oriented forms of electrical generation. It would also include infrastructure, recycling, waste management and the materials needed to create sustainable energy technologies. Picture Author : Johann Dréo
The challenge of green investing is twofold: To increase personal wealth while avoiding harm to people and the environment. Ideally, socially responsible investing can help work to help make the world better. As with any significant financial investment, we advise you to do your research before you bet the farm on any one sustainable investment strategy. Keep in mind as you are choosing investment opportunities that, if the company you choose to support doesn’t make money, you aren’t doing yourself or them any good by backing them. Carefully consider not only which investment plan best suits your level of financial commitment and needs, but also which environmental goals, sustainable enterprises, and green organizations you are most eager to support. That is why we think Exchange-Traded Funds are a better way to do green investing. Why take the risk with just one company in one specific mini-segment of the green revolution when you can own a carefully, professionally chosen portfolio of many of the best-of-breed sustainable stocks. Another thing you get from a green ETF is diversification, and that does help reduce the risk of putting too much money into one green stock and company. There are a number of clean energy ETFs that are also worth considering.The PowerShares WilderHill Clean Energy fund (AMEX:PBW) is a terrific example. Below is a list of other Alternative Energy ETFs and their symbols: Claymore/LGA Green ETF (GRN) First Trust NASDAQ Clean Edge ETF (QCLN) PowerShares Cleantech Portfolio (PZD) PowerShares Global Clean Energy Portfolio (PBD) PowerShares WilderHill Clean Energy Portfolio (PBW) PowerShares WilderHill Progressive Energy Portfolio (PUW) Van Eck Market Vectors Environmental Services ETF (EVX) Van Eck Market Vectors Global Alternative Energy ETF (GEX) Van Eck Market Vectors Nuclear Energy ETF (NLR) Take the WilderHill Clean Energy Portfolio (PBW) - if you take a look at the top ten holdings (company stocks owned) you will see an emphasis on the materials used for solar technology, a big geothermal energy player, and other more earth-friendly technologies. The list below represents almost 40% of the holdings. APPLIED MATERIALS AMAT 4.59%,COSAN LIMITED CL A CZZ 3.83% CREE IN CCREE 5.17% EMCORE COR PEMKR 3.63% FIRST SOLAR, INC.FSLR 3.44% ITRON IN CITRI 4.3 5 MEMC ELECTRONIC MTRL WFR 3.88% OM GROUP INC OMG 3.57% ORMAT TECHNOLOGIES ORA 3.63% UNIVERSAL DISPLAY PANL 3.54%. The Van Eck Market Vectors Environmental Services ETF (EVX) gives the green investor a big representation into the green themes of waste management, recycling and infrastructure projects. The top ten holding (shown by percentage of total ETF) below represent about 62% of the funds positions and many of the best-of-breed companies. AssetsAMER ECOLOGY ECOL 3.52% CLEAN HARBORS INC CLHB 3.93% COVANTA HLD CP CVA 3.51% DARLING INTL INC DAR 3.98 % Metal Management, Inc.N/A 4.44% REPUBLIC SVCS INC RSG 9.81% SHAW GROUP INC SGR 3.69% STERICYCLE INC SRCL 9.05% VEOLIA ENVIRONN ADS VE 10.11% WASTE MGMT INC WMI 10%. So far it has been a tough year for clean, green-tech investments, and the year-to-date performance of many of these ETFs are down. Yet with oil prices still very high, the US without a meaningful energy policy and the political landscape in a state of disarray, it is no wonder that many investors remained confused. There is a relatively good chance that the Democrats will not only take control of Congress this November, but if Barack Obama chooses an influential running mate the Democrats might also take control of the White House. After 8 years of environmentally-insensitive leadership in Washington, the time for a change has never been more needed, and the Democrats are much more likely to focus on the world's greatest threat...weapons of mass destruction, pollution,global warming and the destruction of many of the ecosystems of our planet. This should bring about a shift in many nations towards spending hundreds of billions of dollars to reverse the climate crisis and reward those companies and investors who overweight the green investing sectors. As one analyst put it, "Get ready, get set, not quite yet!" When will be a good time to "average in" to the green, sustainable energy and clean-technology ETFs and companies? It is safe to say that probably within 6 months, if not sooner, SRI will become much more popular and we green-investors will have some great buying opportunities. No one knows for sure, but the "green" stars are lining up in our direction. In the meantime, if you are looking for a more exhaustive article on the topic of green, SRI investing, check out the article at Planet Green or you can go through our Seeing Green archive of articles that will familiarize you more with many of the specific approaches and focuses that make this investment arena one of the most promising ones today. We at ChecktheMarket.com will be bringing you many essential articles about the green revolution and how this wave of concern for the health of our planet can be translated into investment opportunities for us all. If you haven't done it already, why not bookmark our site and check back often to see the latest. Our "Seeing Green" section will be your entre to the latest environmentally-important breakthroughs and investment themes. All this doesn't begin to touch upon the opportunities that exist in lessening or mitigating the effects of climate change and the horrific global warming that is happening right now. All of us can do all we can (driving our cars less, installing solar panels, recycling, eating organic foods and supporting sustainable farming practices, etc.). It's also important to put some of our money to work investing in companies and funds that are focused on technologies that will solve our environmental problems in a much bigger way. Join us in putting your money where your heart is. In time we should all be rewarded in more ways than just receiving financial gains. We will all "breathe easier and feel better."
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