Wind Energy ETFs: FAN and PWND

Wind energy has been in use for seven millenia, but the first wind energy exchange traded funds were started only in 2008. Wind energy ETFs belong certainly to the most interesting green investing opportunities available at the moment.Wind Energy

First Trust ISE Global Wind Energy Index Fund (FAN) is an ETF (exchange traded fund) that seeks to replicate the price and yield of ISE Global Wind Energy Index. PowerShares Global Wind Energy Portfolio (PWND) is another interesting ETF that seeks to correspond with the price and yield of the NASDAQ OMX Clean Edge Global Wind Energy Index.

As the two exchange traded funds are based on different indices, some difference between the profits are to be expected. During the last twelwe months, PWND has provided clearly better development.

FAN and PWD in comparison

FAN and PWD in comparison

PWND in Numbers

Top Holdings

Vestas Wind Systems A/S             11.57 %
Gamesa Corporacion Tecnologica S.A.      9.03 %
EDP Renovaveis S/A                     8.71 %
China WindPower Group Ltd.         8.47 %
Iberdrola Renovables S.A.         7.00 %
American Superconductor Corp.         4.87 %
Hansen Transmissions International N.V.     4.70 %
Japan Wind Development Co. Ltd.            4.12 %
Zoltek Cos.                           4.02 %
Nordex AG                 3.98 %

The country allocation

Spain        19.95 %
Denmark     13.36 %
France        12.13 %
United States 11.23 %
Germany       10.31 %
Hong Kong     8.47 %
Japan          5.00 %
Belgium       4.70 %
Canada          3.90 %
China          3.77 %

Expense ratio: 0.75 %

FAN in numbers

Top Holdings
EDP Renovaveis SA      9.65 %
Vestas Wind Systems     8.65 %
Iberdrola Renovables     7.38 %
Hansen Transmissions     7.05 %
REpower Systems AG     5.52 %
Broadwind Energy, Inc.     5.02 %
Gamesa Corporacion Tecnologica, S.A. (Gamesa)     4.88 %
Nordex AG     4.76 %
Babcock & Brown Wind Partners     4.08 %
Japan Wind Development Co., Ltd.     3.40 %
The country allocation

Spain        26.37 %
United States     15.78 %
Germany     13.92 %
Denmark     10.14 %
Belgium     7.03 %
Australia     4.82 %
Japan         4.58 %
Great Britain     4.06 %
France         2.84 %
China         1.82 %

Expense ratio: 0.81 %

Both of the exchange traded funds are very international and some of their main holdings are in European companies. Because of this, they are good choices for anyone trying to diversify a portfolio consisting mainly of US stocks.

ETFs Info Disclaimer: ETFs information presented on this website should not be considered to be correct or complete. It is recommended to visit fund’s manager official website  for most recent information on the ETFs.

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