Add Wind to Your Portfolio with PowerShares Global Wind Energy ETF

Wind energySo what are alternative energies?

According to Wikipedia, alternative energy sources include biomass, geothermal, solar energy, wind energy, and wave power.

In late April, Glaymore Securities launched a Solar Energy exchange-traded fund, TAN, which lets investors in solar energy providers as well as solar energy related equipment and material suppliers. Early this month, PowerShares introduced its own alternative energy ETF, the PowerShares Global Wind Energy Portfolio (PWND), giving investors an option to invest in another fast-growing alternative energy source.

PWND tracks the NASDAQ OMX Clean Edge Global Wind Energy Index (QWND) (PDF file). The index, which was created on June 26, 2008, is modified market-cap based index that includes 32 companies with market capitalization between $201 million and $279 billion traded in Belgium, Canada, Denmark, France, Germany, Greece, Hong Kong, Japan, Spain, Switzerland, the United Kingdom and the U.S.

Currently, the fund holds the following stocks (and their weights):

  • Gamesa Corporacion Tecnologica S.A. (10.44%)
  • Iberdrola Renovables S.A. (10.10%)
  • Vestas Wind Systems A/S (10.07%)
  • Nordex AG (6.71%)
  • Hansen Transmissions International N.V. (5.03%)
  • EDF Energies Nouvelles S.A. (4.35%)
  • American Superconductor Corp. (4.22%)
  • China High Speed Transmission Equipment Group Co. Ltd. (4.18%)
  • Theolia S.A. (4.12%)
  • Clipper Windpower PLC (4.05%)
  • Greentech Energy Systems A/S (3.90%)
  • Canadian Hydro Developers Inc. (3.74%)
  • Zoltek Cos. (3.34%)
  • REpower Systems AG (2.48%)
  • Gurit Holding AG (2.34%)
  • Fersa Energias Renovables S.A. (2.01%)
  • Composite Technology Corp. (1.81%)
  • C. Rokas S.A. (1.75%)
  • E.ON AG (1.62%)
  • Siemens AG (1.60%)
  • General Electric Co. (1.57%)
  • ABB Ltd. (ADS) (1.45%)
  • Renewable Energy Generation Ltd. (1.42%)
  • Japan Wind Development Co. Ltd. (1.32%)
  • FPL Group Inc. (1.23%)
  • Plambeck Neue Energien AG (1.15%)
  • China WindPower Group Ltd. (1.15%)
  • Centrica PLC (0.97%)
  • Mitsubishi Heavy Industries Ltd. (0.66%)
  • AES Corp. (0.52%)
  • Xcel Energy Inc. (0.41%)
  • Acciona S.A. (0.26%)

PWND has an annual operating expense ratio of 0.75% and dividend, if any, is paid on an annual basis.

The underlying index, QWND, is rebalanced every quarter.

Creative Commons License photo credit: tellmewhat2

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4 Responses to “Add Wind to Your Portfolio with PowerShares Global Wind Energy ETF”

  1. ConnieB |  Jul 16, 2008 at 3:25 pm

    Well, this is interesting. I definitely believe now is a good time to start taking a look at investing in alternative energy sources.