Alternative Energy Fund Performance: Which Sub-sectors outperformed?

In this article, we will analyse the recent historical performance of the various sectors of the Alternative Energy Mutual Funds and typically, the Alternative Energy ETF. We have given an introduction about the Alternative Energy Mutual Funds in this article. We then gave a review about Solar Energy Mutual Fund in this article TAN ETF Claymore Solar Energy Fund and another review of a Wind Energy Mutual Fund in this article FAN ETF: Wind Energy ETF. We also gave details about the Guinness Atkinson Global Energy Fund GAGEX.
Biggest question that faces the investors is which sub-sector within the Alternative Energy is good enough for investments? Whether Wind Energy Stocks or Funds are better than Solar energy Funds and Stocks? Whether Fossil Fuel prices are performing better than alternte energy stocks and funds?

Now, its time for us to review the performance of these very funds, along with those like fossil fuels.
Below, we present a comparative graph of how these funds have performed.

The funds covered are:
TAN - Solar Energy Sector Fund
PWND- PowerShare Wind Energy portfolio Fund
KWT - Market Vector Solar Energyy Fund
FAN -Wind Energy ETF
GAGEX - Guiness Atkinson Fund for Alternative Energy

Now, the following important points can be noted down:
- All the various sector funds, be it Solar Energy, Wind Energy, or a combined Alternative Energy Fund, all have shown almost the same returns over the last few months.
- So it appears that there is no point in breaking our heads about which sub-sector within the Alternative Energy sector, should be chosen
- Ultimately, all the alternative energy related sub-sectors are performing the same way. What is the reason for such performance? Well, the main reason is that developments in these various energy sectors is still in the nascent state and is still unclear whether any of these sub-sectors will emerge as a front-runner for the future demand of energy. Fo e.g., both Solar Energy and Wind Energy are found to be efficient sources. However, there are no clear cut indications for future course which these sectors will take. There is nothing in sight whether solar energy or wind energy will be sufficient to replace the traditional fossil fuels. Another thing is the cost of infrastructure required to extract consumable energy from Wind, Solar, Biomass or geo Thermal segments.

Hence, as of now, all the Alternative Energy Stocks and Alternative Energy Mutual Funds are expected to perform the same way with respect to each other. There is no clear site whether this sub sector will outperform the other. Unless there are some real path breaking technical development which makes them really cheap and affordable.