What is a good “green energy” mutual fund?
Sunday, August 29th, 2010 at
2:35 pm
I plan on investing some money for the long term(20+ yrs) and I’m eying energy based mutual funds. Could someone suggest a fund that looks steady and strong? Thanks.
Tagged with: Energy • Fund • good • Green • Mutual
Filed under: Green Mutual Fund
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I think you’d be better off going with an ETF rather than a mutual fund because of their lower expense ratios. A few you might want to consider:
PBW
PBD
PZD
GEX
If you’re looking for a “steady” fund, alternative energy is probably not the way to go. It’s a new industry with many small companies, so expect a lot of volatility. PZD might be less volatile than the others because it includes some large, established companies like Siemens and Corning.
Johnny is right that:
1) ETFs are better for taxes (if you are saving on a regular account, not an IRA/401 etc.)
2) Some popular clean energy ETFs are listed here: http://www.greenchipstocks.com/articles/clean-energy-etfs/221
However, this sector is neither steady nor strong. In fact, energy stocks has plummeted in the past 4 months. Financial analysts say that some of the sectors are just not up for recovery yet. They call these sectors “value traps”, that they do not expect to start growing back soon. See http://www.ameri-financial.com/headline-story/avoid-the-value-trap.html for more value traps.
Whatever you decide to do, stay diversified, do not put all your eggs in one basket. Never buy just one mutual fund/etf if it is a “sector fund”, such as green energy sector. Your investments should follow your goals and strategy. Read more at http://www.ameri-financial.com/invest/2.html