How to Invest in Renewable Energy Companies

Renewable energy can be a good investment.

Numerous companies are investing heavily in renewable energy, making it an increasingly attractive venture for investors. You have a number of ways to invest in alternative energy, from mutual funds and individual stocks to exchange traded funds. Choosing an assortment of investments allows you to take advantage of the growth in the future of energy.

Things You'll Need

• Mutual fund prospectus
• Mutual fund application

Instructions

1. Log on to your own energy company's website and look for the investor relations department. Contact the individual listed there for information about the company and its renewable energy investments. At the same time, request a copy of the annual report and review the company's earnings growth and financial condition.

2. Call several mutual fund companies and ask for prospectuses for their renewable energy and green energy funds. Most large mutual fund companies, such as Vanguard and TIAA-CREF, provide several funds devoted to renewable energy.

3. Review each prospectus carefully, especially the sections dealing with performance and expenses. Choose a fund that has provided consistently good returns at a low cost.

4. Open a brokerage account if you do not already have one. Log on to your account and use the stock screening tools to find companies in the green energy and renewable energy sectors. Choose the firms you want to invest in, go to the trading menu, and enter the ticker symbols and number of shares you want to buy. Review your order carefully and click submit to complete your order.

5. Research exchange traded funds that invest in green energy. One example is the ETF that trades under the ticker symbol WND. This fund invests in companies doing business in wind energy.

References

• Seeking Alpha: First Pure Wind Power ETF Blows Into Town