Wind Energy ETFs Blowing Our Way

Both PowerShares and First Trust Advisors have filed docs with the SEC to provide Wind Energy ETFs.  The PowerShares Global Wind Energy ETF requires a minimum market cap of 200 million and will likely include some or all of the big wind players such as Vestas Wind Systems (VWDRY.PK)

(Denmark), Clipper Steam Turbine (China), Gas Turbine Efficiency (Sweden), Gamesa Corp Technologica (Spain), Windflow Technology (WFLWF.PK)(New Zealand) or Wind Energy America of Eden (WNEA.OB) (United States). 

The First Trust ISE Global Wind Energy ETF will be made up of 2/3 pure plays and 1/3 of companies with a portion of their sales from wind and include companies of all sizes.

Countries with the most installed capacity of wind power include Germany, US, Spain, India and China with China leading the growth by tripling its capacity in 2007 over 2006.  Some expect China to be the leader in wind power generation in just a few years.

Currently, the best way to play wind with a diversified strategy is through the Market Vectors Global Alternative Energy ETF (GEX) which lists Vestas Wind Systems (Denmark) as its largest holding at just under 13% of the fund.

Comments

[harveywallb...:]

Is that Wind Energy America WNEA.ob??? In Eden Prairie Minnesota?

Thanks

2008 Jun 11 07:53 AM

[User 149255:]

12100 Singletree Lane T:1-952-746-1313 F:
Suite 100 2) windenergyamerica.com
Eden Paririe,MN 55344 TR AG
United States # OF EMPLOYEES 2 AS OF 06/30/06

2008 Jun 11 08:44 AM

[harveywallb...:]

Thanks. I guess I'm asking Tate to confirm if WNEA is the firm he's talking about.

Not much is posted anywhere on WNEA; was surprised to see it (I think) here.

I'm long WNEA.

2008 Jun 11 08:54 AM

[danno:]

what kind of "Index" would have >13% in 1 stock? that's just plain moronic.

2008 Jun 11 10:22 AM

[harveywallb...:]

Tate: might you offer an extended word on WNEA? Interested in what you have to say.

Thanks

2008 Jun 11 10:53 AM

[Gary Holdsw...:]

I also believe the writer means Clipper Windpower (based in Carpineria, CA but London AIM listed) instead of Clipper Steam Turbine. Other key turbine manufacturers include Suzlon from India, Siemens (SI), and Mitsubishi.

US-only investors have few pure plays on wind. GE is largest US-based turbine manufacturer, but you don't own GE for just its wind exposure.

There are several derivative plays, including wind tower manufacturers like Ameron (AMN), Trinity (TRN), and the DMI division of Otter Tail Power (OTTR); carbon fiber composite providers for blades, like Zoltek (ZOLT) and Hexcel (HXL), and American Superconductor that makes power electronics for wind farms (AMSC).

Key domestic wind developers FPL Energy division of FPL, Edison Mission Energy division of EIX, and the Austrialia-based Babcock & Brown.

All of these are likely index candidates.

2008 Jun 11 11:09 AM

[ETF Strateg...:]

Wind Energy America has a market capitalization of less than $50 million and very low trading volumes, which make it an unlikely component of a wind energy index. it is not a major player. Those who wish to learn more about wind are urged to visit www.profitingfromclean... and buy the book with the same title by Richard Asplund.

2008 Jun 11 11:44 AM

[Paul Killinger:]

There's also Boone Pickens' CLNE, which uses nat gas to run municipal vehicles, and is going to get big in wind with GE. However, his vision is dependent upon utilizing wind to free up nat gas from the electric grid... Good luck with that!

2008 Jun 11 01:36 PM

[Paul Killinger:]

Mr. ETF,

We keep hearing about it, but are there really any "magic bullets" in the solar sector...? I'd appreciate your insight- thank you.

2008 Jun 11 01:38 PM

[harveywallb...:]

ETF: I believe he does in fact mean Wind Energy America. I'm scratching my head since it's included with the HEAVIES.
IF it is in fact included in any ETF, exposure for WNEA will be priceless. WNEA is small. But has one of the best land holdings in the U.S. for wind projects with Buffalo Ridge.

2008 Jun 11 05:09 PM

[Paul Killinger:]

Thanks for the idea, Harvey!

2008 Jun 11 05:15 PM

[ETF Strateg...:]

Here are the components of the ISE's Global Wind Energy Index.
No Wind Energy America. It's market cap will disqualify it from the Powershares index. Sorry about the formatting.
I don't do magic bullets -- index construction is more my expertise.

Our book explains more about how to approach ETFS.
Source:www.ise.com/WebForm/op...
TICKER NAME ASSIGNED SHARES PRICE WEIGHT
1133 HK HARBIN POWER EQUIPMENT CO-H 23,252,999 13 0.34 %
182 HK China WindPower Group Ltd. 1,865,013,419 0.53 1.13 %
2345 HK Shanghai Prime Machinery Co Ltd 70,553,973 1.89 0.15 %
2766 JP Japan Wind Development Co., Ltd 136,893 431000 4.90 %
658 HK China High Speed Transmission Equipment Group Co. Ltd. 45,143,519 14.1 0.72 %
AES AES Corp. 6,740,134 19.63 1.18 %
AGK AU AGL Energy Limited 12,755,430 13.5 1.45 %
AIR BB Air Energy S.A. 1,998,476 38.71 1.07 %
ALO FP ALSTOM 885,181 156.1 1.90 %
AMN Ameron International Inc 239,373 114.01 0.24 %
AMSC American Superconductor 2,465,027 43.11 0.95 %
ANA SM Acciona SA 468,886 171.15 1.11 %
APWR US A POWER ENERGY GENERATION 1,875,746 22.68 0.38 %
ATI Allegheny Technologies Inc 1,700,702 64.89 0.98 %
BBW AU Babcock & Brown Wind Partners 319,523,527 1.71 4.59 %
BLX CN Boralex Inc 1,472,658 16 0.21 %
BP UN BP (ADR) 2,523,647 68.5 1.54 %
CEI FP Areva - Ci 103,399 796 1.13 %
CGY GY Conergy AG 708,778 13.91 0.14 %
CPST Capstone Turbine Corp 15,726,980 3.46 0.48 %
CWP LN Clipper Windpower Plc 31,283,972 6 3.26 %
EE El Paso Electric 2,799,474 21.55 0.54 %
EEN FP EDF Energies Nouvelles SA 1,685,492 42.95 1.00 %
FDML FEDERAL MOGUL CORP CL A-W/I 4,907,966 18.94 0.83 %
FPL FPL Group 2,166,542 64.56 1.24 %
FRS SM Fersa Energias Renovables SA 37,661,912 4.28 2.22 %
GAM SM Gamesa Corp Tecnologica SA 18,384,633 31.81 8.05 %
GE General Electric 4,986,139 30.33 1.35 %
GES DC Greentech Energy Systems 15,926,071 85 2.50 %
GUR SW GURIT HOLDING AG-BR 335,780 971 2.79 %
HRX0CN Heroux-Devtek Inc. 2,622,433 8 0.18 %
HSN LN Hansen Transmissions International NV 124,449,273 2.81 6.07 %
IBR SM Iberdrola Renovables 24,085,206 4.41 1.46 %
KDN Kaydon Corp. 1,384,562 57 0.70 %
KHD CN Canadian Hydro Developers Inc 3,843,221 5.5 0.18 %
LNT Alliant Energy 2,603,963 37.5 0.87 %
MORPB S Morphic Technologies AB 7,925,565 12.3 0.14 %
NDX1 GY Nordex AG 10,988,970 30.12 4.56 %
NRG NRG Energy Inc 3,428,562 43.37 1.32 %
NVE LN Novera Energy PLC 15,753,747 0.83 0.23 %
OTTR Otter Tail Corp 2,025,542 39.7 0.72 %
RDSA LN Royal Dutch Shell - A 4,465,883 20.94 1.62 %
ROKKA G C. Rokas S.A. 942,963 13.7 0.18 %
RPW GY Repower Systems 3,500,989 201.4 9.71 %
RWE LN Renewable Energy Generation Ltd. 128,768,554 1.09 2.44 %
SI UN Siemens (ADR) 1,184,048 111.1 1.17 %
TENERGY Terna Energy S.A. 6,491,479 7.98 0.71 %
TEO FP Theolia 17,274,617 20.91 4.97 %
TRN Trinity Industries 4,018,485 38.2 1.37 %
VWS DC VESTAS WIND SYST 8,337,347 658 10.13 %
WGOV Woodward Governor 3,136,074 38.82 1.08 %
ZOLT Zoltek Cos Inc 6,980,665

2008 Jun 11 08:09 PM

[barnburner:]

I was looking at the holdings of GEX in yahoo and it seems as 90% of them were down and, of course, GEX was down 1.5%. With oil at or near record highs why are alternative energy stocks (some exceptions like TSL) down in the last several sessions?

2008 Jun 11 10:05 PM