4 Funds to Play the Energy Market

Energy has been weak lately, but it's a good long-term investment

Mar 1, 2013, 6:30 am EDT | By Tom Taulli, InvestorPlace Writer & IPO Playbook Editor

Market Vectors Global Alternative Energy ETF

Concerns about fossil fuels — both about their sustainability and their impact on the earth’s climate — has led to huge investments in alternative fuels over the years.

True, the industry has been volatile and has seen a number of players fall into bankruptcy. And many of the remaining players heavily on government subsidies, which can come and go as economies sway.

Still, the long-term prospects look bright for alternative energy. Those who think better times for alternative-energy stocks are closer rather than farther could consider an investment in the Market Vectors Global Alternative Energy ETF (NYSE:GEX).

GEX’s portfolio has 30 holdings that cover a wide range of companies, from solar power system manufacturer First Solar (NASDAQ:FSLR) to electric-car maker Tesla (NASDAQ:TSLA) to Cree (NASDAQ:CREE), which specializes in LED lighting technology.

Like other alternative energy investments, GEX has performed dismally of late; the past three years have seen an annual loss of nearly 16%. On the flip side, GEX has gotten off to hot start in 2013 with 8% gains … and again, this fund is for those with a very long-term perspective.

GEX charges 0.62% in expenses.