5 ETFS to Keep You Cool

Written by GSCR Staff   
Friday, 28 June 2013 10:00

I had to cool off for a few days but knew I would write about President Obama’s global warming speech from earlier this week.  He had his prop, a white handkerchief to dab his supposed sweaty brow, and ‘statistics’ to back him up.  The takeaway from the speech is that the President stated that he will put his full executive weight behind the EPA to implement his programs aimed at improving the environment. 

Whether or not you believe this agenda is real and will be implemented or just hot air to rally the president’s base amid a variety of scandals is really not that important.  It is probably a good idea to add clean or renewable energy to your portfolio at least in a minor way.  The best way to do this from our perspective are ETF’s, that way you can diversify across this niche sector and avoid the Solyndra’s of the world.

Here are 5 renewable energy ETF’s priced under $20 and some comments about each.

PBW - PowerShares Clean Energy - $5.36

The ETF tracks an index of US-listed companies engaged in the business of the advancement of cleaner energy and conservation.  This ETF has a trailing P/E under 20 and looks very bullish from a technical analysis perspective.  Additionally, there is a $6 strike September 2013 option currently priced at $0.05, or $5, which could be another way to play this one.

ICLN - iShares S&P Global Clean Energy Index ETF - $8.80

This ETF tracks a global index of clean energy companies.  ICLN is up over 40% since December, but there is mixed signals in the short term technical analysis as to whether or not the momentum will continue.

QCLN - First Trust NASDAQ Clean Edge US Liquid - $14.11

This equity tracks an index of clean energy companies that are publicly traded in the United States.  The investment seeks investment results that correspond generally to the price and yield of an equity index called the NASDAQ(R) Clean Edge(R) Green Energy Index which includes companies engaged in solar power, renewable batteries, and alternative fuels.  There are very bullish long-term signals in the technical analysis.

PBD - PowerShares Global Clean Energy Portfolio - $9.74

This one tracks an index of global companies engaged in the business of the advancement of cleaner energy and conservation.  The ETF is up nearly 9.5% for the year but there are indications that the momentum is slowing when we look at the charts.

GEX – Van Eck Global Alternative Energy Fund - $15.22

We may have saved the best for last.  This one also tracks a global index of renewable and clean energy companies.  There are several options contracts priced inexpensively out until January 2014 if that is the way you decide to get into the sector.  The technical analysis looks decent in the short term, but very bullish after that.  GEX is up 14% for the year.

Have a great weekend and try and stay cool.

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.

Disclaimer:

This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports. 

It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations. 

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.

ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS   INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.

For more information, visit our Disclaimer: www.goldmanresearch.com

Add comment
  • No comments found