PowerShares WilderHill Clean Energy Portfolio
Trend: Alternative Energy
Alternative-energy stocks can be an absolute minefield, as evidenced by the huge declines in solar stocks like First Solar (NASDAQ:FSLR), or the recent bankruptcy of electric-vehicle battery maker A123 Systems (NASDAQ:AONE).
Still, that doesn’t change the fact that the world’s current top sources of energy will eventually run out, and that finding new sources is becoming increasingly more expensive. That means a bright long-term future for the alternative energy sector.
To get exposure to the alternative energy space, investors should take a look at the PowerShares WilderHill Clean Energy Portfolio (NYSE:PBW) exchange-traded fund. PBW is based on an index comprised of companies that “focus on greener and generally renewable sources of energy and technologies that facilitate cleaner energy.”
Clean Energy Portfolio has exposure to segments like semiconductors, electrical equipment and instruments and components. Some of the top holdings of the fund include KiOR (NASDAQ:KIOR), First Solar, EnerNOC (NASDAQ:ENOC), Polypore International (NYSE:PPO) and Air Products & Chemicals (NYSE:APD).
Unsurprisingly, PBW’s returns have been terrible as of late; the fund is off by more than 20% this year alone. But again, this fund is for those who are willing to take the long-term view on things.
PBW charges 0.7% in expenses and has about $125 million under management.