Wind Energy ETF Fund: PowerShares Global Wind Energy Portfolio

A new sector of investments has become the hot sector for investments. Moving away from the traditional fossil fuel based energy sector funds, the investors who are concerned about the environment are now looking for Alternative Energy Mutual Funds. In this article, let us discuss the pros and cons and examples of one type of alternative energy mutual fund, which is Wind Energy mutual fund or Wind Energy ETF.

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.

What is the market outlook for returns on Wind Energy Investments?
As per the expert comments, Wind energy is one of the world's fastest growing energy industries. Wind energy was around $30 billion global industry in 2007 and is projected to continue growing.
With the ever growing demand for traditional energy sources like fossil fuels and gas leading to their depletion, the alternative energy sector is much sought after. Everyone is looking for alternative sources of energy and wind energy sector appears to be a promising one with dual benefits – supplying energy and keeping the environment clean and healthy.

Are there any benchmark indices index available to track the performance of the Wind Energy Sector?
NASDAQ recently launched an index for tracking Wind Energy sector. It’s called the NASDAQ OMX Clean Edge Global Wind Energy Index. This index is comprised of companies related to the use, development, manufacturing or distribution of wind energy. Clean Edge divides the components of the Index into two categories; Pure Play Securities and Multinational Corporation Securities. To determine which category a company is in, Clean Edge applies proprietary screens to each eligible component.
As of July 22, 2008 , this index had the following constituents: Nordex AG, Gamesa Corp Tecnologica SA, Vestas Wind Systems A/S, Iberdrola Renovables, Hansen Transmissions International NV, EDF Energies Nouvelles SA,Clipper Windpower Plc, China High Speed Transmission Equipment Group Co. Ltd., Theolia, Greentech Energy Systems, Zoltek Cos Inc, American Superconductor, Canadian Hydro Developers Inc, Fersa Energias Renovables SA, Repower Systems, GURIT HOLDING AG-BR, Japan Wind Development Co., Ltd, General Electric, Siemens AG, E.On AG,ABB Ltd. (ADR), C. Rokas S.A., Renewable Energy Generation Ltd., Plambeck Neue Energien-Reg, FPL Group, China WindPower Group Ltd., Centrica,Mitsubishi Heavy Ind.,AES Corp.,Xcel Energy Inc,Acciona SA

What are the available fund options for investments in Wind Energy Sector?
The most recent development has been the launch of an ETF calledPowerShares Global Wind Energy Portfolio by Invesco Poweshares, which is a front runner in Exchange traded fund products. This PowerShares Global Wind Energy Portfolio ETF is based upon the above mentioned NASDAQ OMX Clean Edge Global Wind Energy Index and will closely track the performance of this index.

Related Competitor Product: FAN ETF First Trust ISE Global Wind Energy Index Fund

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

What are the risks involved with Wind Energy Fund ETF Investments?
Since the PowerShares Global Wind Energy Portfolio is based upon NASDAQ OMX Clean Edge Global Wind Energy Index, which is global in nature, there is always a currency or forex risk. Along with this also comes the geo-political risk, along with local tax laws, accounting standards, etc.
Then there are the general risks like obsolescence of technology, emergence of other mediums of energy sources like solar energy which may be more efficient and similar things.

Where can an investor get more information about the Invesco PowerShares Global Wind Energy Portfolio?

Interested investors may seek more information by calling Invesco toll-free number: 800.983.0903.

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