Wind Energy ETF
Living from the wind, it is possible with this wind energy ETF. Travelling through Europe you will come across many wind mills and they seem to get bigger and bigger, providing more and more energy.
What we don’t see is the construction of huge wind mill parks at sea and these too are getting larger and larger. Looking at these wind mills I always think “looks expensive to build one”, and that is true. Today we can speak about a thriving market in wind energy.
Investing a wind energy ETF most certainly looks promising, there are many chances for growth still although I myself must confess that I think that solar energy has much more potential, it is cheaper and more efficient and they are not so ubiquitous.
That being said, the demand for wind mills is still growing. Some concern can be expressed about the role of governments, without heavy subsidization it would almost be impossible to get wind mill plans moving. But I do think that the mission of cleaner energy will keep governments putting their money where their mouths are.
First Trust ISE Global Wind Energy Index Fund ETF
This First Trust Wind Energy ETF is tracking the ISE Global Wind Energy Index. More than 40 stocks of wind energy companies are included. Within this wind energy ETF there has been made a provision which stipulates that 67% of the included companies must be exclusively focused on wind energy.
33% of the companies included may perform other activities than wind energy. The 3 largest companies included, each with a share of 10%, are Vestas Wind Energy, Nordex and Iberdrola.
The country spread is wide, companies originate from all parts of the world. Spain is the striking leader here with a share of 22% in this wind energy ETF. Germany comes in second with 17% and Denmark has a share of 14%.
This wind energy ETF is considerably speculative in nature. In the past prices have gone through the roof due to very rosy expectations. But they have come down hard and bounced up again. Returns may be interesting though, so it most certainly is an ETF to watch closely.
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First Trust ISE Global Wind Energy Index Fund ETF info:
ETF provider: First Trust
Exchange: Nyse Arca