Wind Alternative for Energy Investments

Wind power can be a good investment.

If you feel that alternative sources of energy will gain a foothold in the coming years, you can get in on the ground floor by placing part of your stock market portfolio in investments that stand to benefit from a changing energy environment. Whether you choose a specific wind power investment or a more broadly diversified alternative energy fund, you can profit from the growth in alternative sources of energy.

Pure Play Exchange Traded Funds

Exchange traded funds (ETFs) work much like mutual funds in that they hold many different stocks in their portfolios. But unlike mutual funds, exchange traded funds can be bought and sold during the trading day, giving buyers and sellers an edge in volatile markets. Perhaps the most direct way to play wind power is the ETF that trades under the ticker symbol WND. This ETF invests in firms in the wind power industry, allowing investors to profit when those stocks do well.

Traditional Energy Stocks

Many old line energy companies are now placing part of their investments in wind power and other renewable forms of energy. You can use financial publications, news reports and the company's own annual reports and shareholder documents to find those companies and invest in them. Contact the investor relations department of each company and ask about their commitment to wind power and alternative fuels. Use the information you gather to determine which companies have made the biggest commitment to wind power generation.

Windmill Manufacturers

There can be no wind power without windmills, so buying the stocks of companies that manufacture those huge industrial windmills can be a smart move. You can find those companies by scouring financial publications and by using the stock screening tools your broker makes available. Look for firms in the wind industry, then refine your search to find the manufacturers that supply wind farms with the equipment and expertise needed to generate energy when the wind blows.

Ethical Investment Funds

Many mutual fund companies have special funds designed for investors who are just as concerned about the future of the planet as they are about the bottom line. These funds go by names like "responsible growth" or "ethical investing" funds, and they often include companies in the wind generation and alternative energy arenas. Contact the mutual fund company and request an annual report to see exactly which firms the fund holds.

Green Energy Funds

Green energy funds invest in a wide range of alternative and renewable energy sources, including solar panels, geothermal and wind. The best way to determine the percentage of the fund dedicated to wind power is to request an annual report or view one online if it is available. The annual report lists the percentage of the fund invested in each area of the alternative energy universe.

References

• Seeking Alpha: New Pure Play Wind ETF
• CNN: From Greed to Green