FAN ETF First Trust ISE Global Wind Energy Index Fund

A New ETF or Exchange Traded Fund has been launched in the market in the Wind Energy Sector. The Wind ETF is called FAN or First Trust ISE Global Wind Energy Index Fund. This is one of the unique products from the wind energy sector by FirstTrust Mutual Fund house.

FirstTrust Global Wind Energy ETF (the Exchange Traded Fund) is designed to track the performance of the ISE Global Wind Energy Index. The Fund will normally invest at least 90% of its assets in common stocks that comprise the Index or in depository receipts representing securities in the Index.

What is a Wind Energy Fund or Wind Energy ETF?
Wind Energy Mutual Funds or Wind Energy ETF Exchange Traded Funds are a type of mutual funds or ETF which fall into the Alternative Energy Fund category. These Wind Energy funds typically concentrate upon investing the money in companies which are in the business of wind energy and are primarily manufacturers, developers, distributors, installers, and users of energy derived from wind sources.
Hence, these Wind Energy Funds provide an excellent investment option to investors who are conscious about the environment and want to go for Green Investments, thereby avoiding companies whose projects may harm the environment. Wind Energy Funds or ETF are one of the best options for such investors.

Which benchmark indices index are available to track the performance of the Wind Energy Sector?
There are atleast 2 such index or indices available to track the performance of the Wind Energy Sector. First is the NASDAQ OMX Clean Edge Global Wind Energy Index and second one is the ISE Global Wind Energy Index, which is the first global wind index to provide a benchmark for investors interested in tracking public companies that are active in the wind energy industry. Eligibility to be included in the index is limited to those companies that are actively engaged in the wind energy industry, such as the development or management of a wind farm or the production or distribution of electricity generated by wind power. To date, only 53 companies worldwide have been included in the index.

What is the FAN ETF First Trust ISE Global Wind Energy Index Fund?
The First Trust ISE Global Wind Energy Index Fund or FAN ETF is an exchange traded fund based upon the ISE Global Wind Energy Index. FAN ETF will attempt to closely track the performance of the ISE Global Wind Energy Index.
The top 10 holdings of this index/fund are: REpowersystems AG - 10.51%, Vestas Wind Systems - 10.28%, Gamesa - 8.81%, Hansen Transmissions - 6.80%, Japan Wind Dev. Co. - 5.13%, Babcock & Brown Wind Partners - 4.40%, Nordex AG - 4.34%, Theolia SA - 4.28%, Clipper Windpower - 2.94%, Gurit Holding AG - 2.81%.

What is the expense ratio of FAN ETF First Trust ISE Global Wind Energy Index Fund?
The expense ratio for the FAN ETF Fund is 0.60%, and FAN ETF trades on the NYSE Arca exchange.

Related Competitor Product: Invesco PowerShares Global Wind Energy Portfolio

Related Articles: Green Mutual Funds  Alternative Energy Mutual Funds   Low Cost Mutual Funds

What are the fundamental valuations of FAN ETF First Trust ISE Global Wind Energy Index Fund?
The current PE or price to earnings ratio of FAN ETF fund is 25 and net assets are worth around 9 million USD. As this alternative energy sector is supposed to see a big investment, so is expected from the Wind Energy sector investments.
What are the risk factors for FAN ETF First Trust ISE Global Wind Energy Index Fund?

The FAN ETF may also invest in utility companies. Companies in the industrials sector face risks that arise from the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand, spending trends in that they may be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations and government regulations.o

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