Global Clean Energy ETF Has Significant Smallcap Tilt

Powershares has introduced a Global Clean Energy (PBD) exchange traded fund which tracks the WilderHill New Energy Global Innovation Index. Companies in the ETF basket have innovative technologies and services focus on the generation and use of cleaner energy, conservation, efficiency and the advancement of renewable energy in general. The Index uses an equalweighting methodology modified by sector and market capitalization bands, to provide diversification across the clean energy industry.

A majority of the companies in the index will be international companies and non-U.S. companies have been a driving force behind significant growth in clean energy investment, accounting in 2006 for $18.7 billion, or 67% of global asset financing alone. The U.S. accounts for 27% of this ETF's exposure, with Germany at 17% and Japan with 12%.

This ETF has a decidedly small company, growth tilt with 49% of the companies in the basket in the category of small cap growth and 27% listed as mid cap growth. There is food balance and diversification with no single company representing more than 3% of the baslet. The expense ratio is 0.75%.