6 cleantech indices to juice your portfolio by Amy Westervelt - 5.5.08
Ready to put your money where your mouth is? Jump into the investment market with cleantech index–derived mutual funds and ETFs.
Ardour Global Alternative Energy Index Developer: Ardour Global Indexes (Ardour Capital Investments and SNetwork Energy Technologies LLC) Environmental criteria: More than 50% of gross revenues derived from: renewable power sources, distributed generation, energy efficiency, enabling technologies (batteries, advanced materials, ultracapacitors, etc.), or other “environmental technologies” (including water treatment, “clean” coal, waste management) Market criteria:
- Listed on AMEX, Nasdaq or NYSE
- Minimum market cap of $100 million
- Average daily closing price greater than $1
Historical performance: Outperformed S&P Global 100 by 13% on year to date returns U.S. tradeable products: Van Eck Market Vectors- Global Alternative Energy ETF (NYSE: GEX)
Clean Edge U.S. Index Clean Edge U.S. Liquid Series Index Developer: Clean Edge and Nasdaq Environmental criteria: Technology manufacturers, developers, distributors, and/or installers in: advanced materials; energy intelligence; energy storage and conversion; renewable electricity generation and renewable fuels. Demonstrated ability to capture the growth potential of the clean-energy sector Market criteria:
- Listed on AMEX, Nasdaq or NYSE
- Minimum market cap of $150 million
- Minimum closing price of $1.00
- Average daily trading volume of at least 100- thousand shares year-to-date
Historical performance: Outperformed S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite Index by an average of 17.5% over the last five years U.S. tradable products: First Trust Nasdaq Clean Edge U.S. Liquid Series Index Fund (Nasdaq: QCLN)
CTIUS Developer: Cleantech Indices, LLC (Cleantech Network) Environmental criteria: 50% of either sales or operating profits from cleantech businesses, defined as those that provide superior performance at lower costs, greatly reduce or eliminate negative ecological or public health impact, and improve the productive and responsible use of natural resources. Market criteria:
- Listed on AMEX, Nasdaq or NYSE
- Floated market capitalization of at least $150 million
Historical performance: “Significantly outperformed” the S&P 500, Dow Jones 30 Industrials, and Nasdaq indices over the past three and five year periods Tradeable products: PowerShares Cleantech Portfolio (AMEX: PZD); In talks to license in additional countries
FTSE ET50 Developer: FTSE Environmental criteria: More than 50% of sales, investments or operating profits are derived from: alternative energy and energy efficiency; water technologies and pollution control; or waste technologies and resource management Market criteria: Must turnover at least 0.05% of shares in issue based on median daily trade per month in 10 of the 12 months prior to the semi-annual review, and at least 0.04% of shares in issue based on median daily trade per month for at least 8 of the 12 months prior to the semi-annual review. Historical performance: Outperformed the FTSE Global All Cap Index by over 12% over the last five years Tradeable products: In talks to license ETFs and mutual funds.
S&P Global Eco Index Developer: Standard & Poor’s (McGraw Hill Cos.) Environmental criteria: 30 large, liquid companies in six sectors*: clean energy producers, clean energy technology and equipment providers, environmental services, timber, water technologies, water utilities and infrastructure Market criteria:
- Listed on a developed market exchange
- Market capitalization of at least $1 billion
- Three month average daily trading volume of at least $2 million
Historical performance: Current holdings outperformed S&P Global 1200 by 28.85% over the last three years Tradeable products: Claymore S&P Water ETF (AMEX: CGW)
WilderHill Clean Energy Index Developer: WilderHill Environmental criteria: Company must be identified as one that has a significant exposure to clean energy, or contribute to the advancement of clean energy, or be important to the development of clean energy. Market criteria:
- Listed on AMEX, Nasdaq or NYSE
- Market cap of $200 million or above, with a three-month average market capitalization of at least $50 million
- Three-month average closing price above $1.00 Minimum average daily liquidity requirements
Historical performance: Outperformed Nasdaq Composite Index by 13.31% and S&P 500 by 11.52% over last three years Tradeable products: PowerShares WilderHill Clean Energy Portfolio ETF (AMEX: PBW); PowerShares Global Clean Energy Portfolio (AMEX: PBD)
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