PowerShares Clean Energy Portfolio (PBW) ETF

PowerShares Clean Energy Portfolio (PBW) is an interesting exchange traded fund (ETF) that tries to replicate the performance of WilderHill Clean Energy Index.

WilderHill Clean Energy Index (ECO) tracks the clean energy sector: specifically, businesses that should benefit from a societal transition toward use of cleaner energy and conservation. Stocks and sector weightings within the Index are based on their significance for clean energy, technological influence and relevance to preventing pollution in the first place.

The index includes companies from the following areas:

  • Renewable energy supplies – harvesting energy
  • Energy storage
  • Cleaner fuels
  • Energy conversion
  • Greener utilities
  • Power delivery and conservation

The top holdings in the PowerShares Clean Energy Portfolio ETF are:

  • Yingli Green Energy Holding Co. Ltd. (ADS) 5.03 %
  • Trina Solar Ltd. (ADS) 4.48 %
  • Cosan Ltd. (ClA) 4.37 %
  • Fuel Systems Solutions Inc. 4.35 %
  • Suntech Power Holdings Co. Ltd. (ADS) 3.71 %
  • ReneSola Ltd (ADS) 3.42 %
  • Ormat Technologies Inc. 3.36 %
  • OM Group Inc. 3.12 %
  • Sociedad Quimica y Minera de Chile S.A. (ADS) 3.02 %
  • American Superconductor Corp. 2.99 %

Unsurprisingly, some of the top holdings belong to the top holdings of solar energy ETFs, as well. Hence this ETF might not be that useful for diversifying a portfolio that includes some of the solar energy ETFs. But if you don’t have any other green ETF in your portfolio, this might be a good choice for you.

As the Clean Energy Portfolio ETF is more diversified than a pure solar energy ETF, it is not quite as volatile as the solar energy ETFs are. During the last year, the results provided by PBW have been slightly  better than for example the results provided by The Claymore/MAC Global Solar Energy Index ETF (NYSE: TAN) as you can see from the chart.


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