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ETF Alternative Energy presents - How is Clean Tech Different From Green Tech

Here on ETF Alternative Energy we are pleased to present you with articles from our guest writers on a wide variety of alternative energy topics. We hope you enjoy this one:

How is Clean Tech Different From Green Tech
By Bernz Jayma P.

The concept of “clean tech” is a response to the projected population growth on the planet, which is estimated to be 2.3 billion people by the 2050. The theory is that clean tech companies, which address environmental sustainability as part of their overall business strategy for profitability, will be the model that successful companies will have to use in order address the increasing demand for food, clothing, shelter and other scarce resources that will only increase as incomes rise across the globe.

Where “green tech” evolved in the 1970s from government controls intended to mitigate the effects of manufacturing and agricultural pollutants on the environment, “clean tech” is built into the business model from the very beginning. Green tech has traditionally always seen as an expensive, but required, drain on a company’s profits. Clean tech is built into the business strategy as an acknowledgement that resource scarcity and pollution exist and must be addressed when planning profitable strategies. It is a long the same lines as when a business incorporates the cost of paying office rent or the cost of purchasing manufacturing materials into its overall budget.

Also, there are some products which are included in green funds which would never be included in a clean fund, such as ethanol. Where an alternative energy fund would include a company which produces ethanol in its fund because ethanol is considered to be an alternative to petroleum based fuels, a clean tech fund would not include an ethanol-producing company in its portfolio because of it’s net carbon effect. Ethanol production requires so much petroleum based fuel in order to grow the corn and process it, that there is negligible positive effect on the environment for using it.

Green tech Exchange Traded Funds (ETFs) tend to focus narrowly on a single business sector, like energy, manufacturing or recycling. As a result, green energy Exchange Traded Funds can be extremely volatile and sensitive to fluctuations in the price of oil. Clean tech ETFs have not been so volatile (although, in fairness, they have only been around since the Clean Tech Index was created in 2006, so there is not a long history to track). Clean tech companies exist across a broader range of business sectors like agriculture, manufacturing, transportation and new materials. As a result, clean tech Exchange Traded Funds have seen a more stable performance, comparable to the returns from the S&P 500 Index.

Author and entrepreneur Bernz Jayma P. is the owner of a financial blog dedicated to helping people expand their knowledge on personal finance. You may visit his blog at http://www.Invesmint.com.

Article Source: http://EzineArticles.com/?expert=Bernz_Jayma_P.
http://EzineArticles.com/?How-is-Clean-Tech-Different-From-Green-Tech&id=2179374

ETF Alternative Energy presents - Energy ETFs - Alternative Energy is Hot

Here on ETF Alternative Energy we are pleased to present you with articles from our guest writers on a wide variety of alternative energy topics. We hope you enjoy this one:

Energy ETFs - Alternative Energy is Hot
By Ryan Moxie

With today’s economy, commodity ETFs (exchange traded funds) are the investment to watch. Energy ETFs are among the most popular of the commodities. Energy exchange traded funds include crude oil, coal, natural gas, and even gasoline. Alternative energy ETFs are now making their way into our hearts. These include solar energy, wind energy, and nuclear energy. Even water resource energy is now being sold. Why are alternative energies growing so popular?

Most energy ETFs are futures. This means that they watch the future prices and resources of the energies. For example, oil and gasoline are futures. These energy ETFs depend on the future prices of a barrel of oil as well as how much oil is being made and stored. In other words, will there be enough supply to meet the demand. If the prediction is that there won’t be enough, then the obvious follow up is that gas prices will continue to rise. Therefore, anybody owning these energy exchange traded funds are likely to make money on them.

Natural gas energy exchange traded funds are futures that depend on the prediction of the need for this energy. If Congress passes the energy bill the need for clean energy will be high and natural gas is sure to be in high demand.

Solar energy ETFs are one of the more popular of the alternative energy exchange traded funds. Solar energy is a renewable source and current science tells us that it is impossible to run out of. So if the lack of resources isn’t going to drive up the price, then it must be demand. The demand for solar energy is increasing every day that people learn about greenhouse gasses and what it is doing to our planet. The more people who want solar energy, the higher the demand, and the companies that provide solar energy solutions will make more money - as will the solar energy ETF holder.

The popularity of wind energy is growing and that is why the new wind energy ETFs are gaining in popularity, too. The exciting thing about wind energy is that one megawatt of wind energy produced from a turbine (windmill) will generate energy for 380 families. If wind energy is utilized in all of the continental United States, 20% of our energy needs will be taken care of by a natural resource that is always there. I took a drive out west a few months ago and was amazed at how the rural communities in western United States are taking the hint. These turbines are everywhere in some places and the trend seems to be moving east. Now is the time to get in on wind energy exchange traded funds.

There are alternative energy ETFs that bundle alternative energies together. These include solar, wind, nuclear, and soon to be water. While some analysts advise that investors wait for the alternative energy ETFs to level out before buying due to the volatility of the funds, other analysts are saying this is the time to buy in energy commodity ETFs.

Ryan helps you understand ETF commodities and shows you how to profit from energy ETFs.

Article Source: http://EzineArticles.com/?expert=Ryan_Moxie
http://EzineArticles.com/?Energy-ETFs—Alternative-Energy-is-Hot&id=1318420

ETF Alternative Energy presents - How to Use ETFs in Your Portfolio

Here on ETF Alternative Energy we are pleased to present you with articles from our guest writers on a wide variety of alternative energy topics. We hope you enjoy this one:

How to Use ETFs in Your Portfolio
By William Sinclair

Exchange Traded Funds, or ETFs, have revolutionized the way individuals can now invest. Rather than a traditional mutual fund, these are mutual funds that are on a stock exchange that look, trade, and work just like stocks.

There are several advantages with ETFs over mutual funds:

• They trade instantly, there’s no waiting for the day’s closing price at 4 p.m.
• You can buy or sell them with limit orders and place stop loss orders on holdings to protect your investment from a large drop
• Many are offered that give you double or triple the underlying index value’s daily change, so you have additional leverage with your money
• Many allow you to short either a market index or a stock sector
• You can buy them in an IRA or 401k and thus can short stocks that way, benefitting from falling prices with a rising price in the short ETF. You cannot short stocks in a retirement account, because if they move against you (up), you would owe additional funds.
• You can use a sector specific ETF to hedge stock positions by providing some insurance against an opposite move in those

Traditional mutual funds don’t allow any of these, you can’t have a preset sell price, or stop loss order, you can’t buy at a specific price, you don’t get the immediate value when you buy or sell. On Black Monday in 1987, when the market plunged at the open, those who sold mutual funds had to wait until the 4 p.m. prices, which was at the day’s lows, down over 20% on average for that day alone. People, like me, who sold stock at the open had their cash immediately and avoided the day’s plunge. Traditional funds will usually cost more in fees when you get out than an ETF, which will trade at the cost of a stock trade’s commission.

You can use ETFs for various investment purposes:

• You can use them alone for investing rather than trying to pick individual stocks
• You can buy into or short an entire sector, such as financials or real estate, with one trade
• You can use them to hedge stock positions, such as using a financial short ETF to protect a long position in financial stocks, or a short index ETF to protect all your long positions at once
• You can buy the entire market with a broad index fund, such as the S&P500 or Russell 2000, or short the market the same way
• You can lessen your risk because there’s no chance of bankruptcy or a bad earnings forecast such as may occur with individual stocks
• ETFs allow beginners to safely learn how to trade while remaining diversified without having to analyze individual stocks

ETFs have succeeded because of all these advantages. Most now trade millions of shares per day, and I would avoid those that still trade below 100,000 shares daily, which is called liquidity; you only want to trade liquid stocks. For beginning investors, these offer the safest way to learn how to trade the stock market with the least risk. Simply buy a long or short S&P500 or Dow 30 fund, put in a stop loss order to protect yourself from a big loss, and you have easily started down the road to safer investing.

William Jose Sinclair
Find any ETF you may need at http://etfguide.blogspot.com
Find more stock trading wisdom from 30 year traders at Pro Stock Traders http://prostocktraders.blogspot.com

Article Source: http://EzineArticles.com/?expert=William_Sinclair
http://EzineArticles.com/?How-to-Use-ETFs-in-Your-Portfolio&id=2102448