PowerShares Cleantech ETF
When most investors think about getting “green” with their portfolios, they often first turn to the solar and wind industries.
However, the concept of cleantech encompasses so much more than just solar panel producers. A widely diverse segment of the technology industry, cleantech is used to describe products or services that still manage to provide operational performance, while reducing various costs, inputs, energy consumption or waste. This wide net includes investments in everything from water and energy efficiency to recycling efforts and pollution control.
Given just how much pressure is being placed on the planet from our rapidly growing populations, the PowerShares Cleantech (PZD) could be one of the best ETFs for young investors.
This small and ignored PowerShares ETF tracks 60 different firms that focus on cleantech ideals. While that does cover some small-fry start-ups like Silver Spring Networks (SSNI), the bulk of the holdings are in big global multinationals like ABB Ltd. (ABB). That provides plenty of balance for the fund and could make less prone to the whims of market volatility.
Overall, the mixture of various “green” ideals — rather than just solar power — could make it one of the best ETFs and a prime play for younger investors.
As of this writing, Aaron Levitt was long FM and VDAIX, which is the mutual-fund version of VIG.