Why Invest in Renewable Energy?
Given all the attention that renewable energy is getting in the news over the last couple years, investing in renewable energy has become a hot topic. People are drawn to renewable energy for one of several reasons:
- To fight Global Warming
- To prepare for Peak Oil.
- To improve Energy Security and local economies.
- To cash in on the above trends.
The beauty of investing in renewable energy companies is that these goals are not mutually exclusive. With one investment, the investor can feel good about what his money is doing for three reasons, while putting his money in what is proving to be a spectacular growth story.
How To Invest
For mutual fund investors, Renewable Energy focused mutual funds have been few and far between, but the recent growth of interest in the sector has lead to a plethora of new offerings. US investors can choose from load funds such as the New Alternatives Fund (NALFX) and Calvert Global Alternative Energy Fund (CGAEX) and the no-load Guinness Atkinson Alternative Energy Fund (GAAEX). Unfortunately, the load funds have expense ratios in excess of 1.25%, and the Guinness Atkinson fund’s ratio is 1.98%. Given these high expenses, I strongly prefer the industry ETFs.
For more information, please visit: Alternate Energy Stocks