Oil ETFs weren't the only winners yesterday - record prices sent investors once again scurrying for alternative energy sources.
The First Trust NASDAQ Clean Edge US Liquid (QCLN) was up nearly 4% in trading yesterday as oil once again hit a new record of $139.89 before pulling back some, finally settling at $134.61 a barrel.
Gas prices also continued moving up, now at a record $4.08 a gallon national average.
At prices like these, it's no wonder people are looking for other ways to access energy. Alternative energy ETFs are being rolled out more and more frequently. Some of the most recent launches include:
- PowerShares Wilderhill Clean Energy Portfolio Fund (PBW)
- Claymore/MAC Global Solar Energy (TAN)
- Van Eck Global Alternative Energy (GEX)
- Market Vectors Global Nuclear Energy (NLR)
The newest member of the alt-energy family is expected this week, this time harnessing the power of wind: First Trust says it will launch the First Trust ISE Global Wind Energy Index Fund (FAN) on Wednesday. Its underlying index is made up of companies around the world that are active in the wind energy industry. The minimum market cap for a company in the index is $100 million.
Wind energy is currently supplying enough electricity annually in the United States to power more than 4.5 million homes. While that sounds like a lot, less than 1% of the nation's electricity is currently supplied by wind power, according to the American Wind Energy Association. In Europe, Denmark gets more than 20% of its power from wind. In 2007, Germany received about 7% of its power from wind.
In the United States, the winds in North Dakota alone could supply about one-third of the nation's electricity, but there are adequate winds for commercial power production at various sites in 46 states.
The other wind energy fund expected sometime soon is the PowerShares Global Wind Energy Portfolio.
Seems like wind power has lots of potential for growth in this country.
Corn Helps ETFs, But It Might Be Missing From the Grill This Summer
When it comes to the weather, crops just can't seem to win, but ETFs do.
If you're hungry, the flooding in the Midwest is probably just making a bad situation worse. But if you're holding an ETF that tracks futures, such as the PowerShares DB Agriculture (DBA), you're loving the continued hot streak. Year-to-date, the fund is up 23.2%.
Corn futures have hit yet another record, rising 3% after flooding wreaked havoc across the Midwest, Miyoung Kim for Reuters reports. Much of the world's food is grown there, and now is not a particularly good time for torrential rains and flooding, as we're already in the midst of a global food crisis.
The U.S. Department of Agriculture has already chopped 5 bushels per acre of this year's corn production.
We suggest you start thinking about alternative side dishes when you're grilling out this summer.
On the other side of the world, Australia's main eastern agricultural state of New South Wales is now 60% in drought, says Michael Byrnes for Reuters. The estimated wheat crop has been slashed as a result.
- PowerShares DB Agriculture (DBA): holds futures for corn, wheat, soybeans and sugar
- ELEMENTS Rogers International Commodity Agriculture ETN (RJA): up 10.4% year-to-date; seeks to replicate an index of agricultural commodity futures contracts, including soybeans, corn, oats, rice and wheat.
- E-TRACS UBS Bloomberg CMCI Agriculture Index ETN (UAG): up 8.7% since April 4 inception; seeks to replicate an index that represents the value of a range of agricultural commodity futures contracts, among them wheat, corn and soybeans.
In another commodities news, oil keeps on chugging past new highs. Now, it's within spitting distance of $140 a barrel, John Wilen for the Associated Press reports. That's despite Saudi Arabia's recent promise that it was going to step up production.
Gas also hit a new record, up to $4.08 a gallon.
Naturally, oil and gas ETFs are responding well to these developments:
