What Does the Future Hold for Wind Energy ETFs?

As crude oil continues to stay above the $70/barrel range, some are starting to revisit the renewable and alternative energy arenas, but what effect is it having on the sector and its ETFד?

One such form of renewable energy gaining some additional attention is wind energy. One reason it is drawing the attention is that it is the largest highly concentrated form of renewable energy on Earth and has the potential to power all civilization. A second reason is the efficiency of this form of energy. It requires a relatively little area per person to generate energy, states Katie Howell for The New York Times.

Unfortunately, it isn’t all sunshine and smiles on the wind energy platform. Some obstacles that need to be overcome include the reliability of wind power. Jet streams are more reliable than winds on the ground, but they don’t provide as reliable an energy source as coal-fired power plants. There are a handful of start-ups working to harness those high-altitude winds, though.

Regardless, most scientists remain fairly optimistic of the future of wind energy and predict that eventually, the technologies will be there within a decade.

Some ETFs to take a look at are the following:

• PowerShares Global Wind Energy Portfolio (PWND): up 25.1% year-to-date

• First Trust ISE Global Wind Energy (FAN): up 14.1% year-to-date

Kevin Grewal contributed to this article.

Comments

[AndrewBaker:]

Given the current rally has broken down, those who go long only and don't want too much cash in hand, could consider wind energy as a long-term buy and hold, buying more on the dips perhaps. I own PWND and believe that over time it will continue to do well.

Wind energy will become much more viable when we have DC current power lines that can move the energy efficiently from where it's produced to where it's wanted, internationally. The technology is there, and the political will is much more so Obama is supportive of alternative energy sources.

One individual company worth a look at concerning power lines is Quanta Services (PWR), which I own. IMHO another long term long stock to buy on the dips, and there will be plenty of those over the next while or so ...

Jun 23 12:10 PM