Best No Load Alternative Energy Mutual Funds - PBD - Invesco Powershares Global Clean Energy Portfolio

Today we'll continue our look at the best no-load alternative energy mutual funds and ETFs with an analysis of Invesco Powershares Global Clean Energy Portfolio (PBD):

The Invesco Powershares Global Clean Energy Portfolio (PBD) attempts to gain investment returns through increased stock share prices and dividend yield and tries to correspond to the WilderHill New Energy Global Innovation Index. The index as a whole attempts to deliver capital appreciation and is derived of companies that focus on clean energy normally from renewable sources and technologies that promote green energy sources. This portfolio is reconstituted and rebalanced on a quartlerly basis.

The Invesco Powershares Global Clean Energy Portfolio (PBD) is currently made up of 80 holdings. The top holdings of the portfolio include:

Hansen Transmissions International N.V. 4.31%
Vestas Wind systems A/S 3.51%
Suntech Power Holdings Co. Ltd. (ADS) 3.38%
Gamesa Corporacion Technologica S.A. 3.36%
China High Speed Transmission Equipment Group Co. Ltd. 3.27%
SMA Solar Technology AG 3.04%
EDF Energies Nouvelles S.A. 2.61%
Acciona S.A. 2.48%
Iberdrola Renovables S.A. 2.41%

The Invesco Powershares Global Clean Energy Portfolio (PBD) is set up as a Multi-Cap fund. The companies in the portfolio break down as follows:

Large-Cap Growth 15.99%
Large-Cap Value 3.43%
Mid-Cap Growth 49.17%
Mid-Cap Value 2.54%
Small-Cap Growth 24.44%
Small-Cap Value 4.42%

The Invesco Powershares Global Clean Energy Portfolio (PBD) is a multi national fund. The investments within the portfolio are attributed to the following countries:

United States 24.12%
China 11.93%
Germany 11.37%
Spain 11.13%
France 7.87%
Japan 7.30%
Denmark 5.28%
Belgium 5.15%
Brazil 2.79%
Switzerland 1.96%

As with any no load alternative energy mutual fund the Invesco Powershares Global Clean Energy Portfolio (PBD) is subject to market risks that may result in losses. Since the Invesco Powershares Global Clean Energy Portfolio (PBD) is very lightly diversified the risk of loss and potential for gains is greater than the market as a whole. The Invesco Powershares Global Clean Energy Portfolio (PBD) has a low expense ratio of 0.75%.

All-in-all The Invesco Powershares Global Clean Energy Portfolio (PBD) is a very solid no-load alternative energy mutual fund.

Next we will continue our look at the Best No-Load Alternative Energy Mutual Funds with Powershares Wilderhill Clean Energy Portfolio (PBW).

Best No Load Alternative Energy Mutual Funds and ETFs

While researching I found an article on the best no load alternative energy mutual funds on www.top-no-load-mutual-funds.com. I like what they have to say about the funds but I would like to delve into each individual fund a little deeper. Over the next week or so I will be reviewing these funds and adding in a few of my own.

So here goes:

#1: Calvert Global Alternative Energy Fund (CGAEX): This is a nice clean, green socially responsible alternative energy mutual fund, but I am not sure that I would consider this the absolute best no-load alternative energy mutual fund.

The investment objective of the Calvert Global Alternative Energy Fund is to gain long-term growth of capital by investing in equity securities of businesses that are engaged in alternative energy and meet the social criteria of the fund. The fund invests in companies both inside and outside of the United States.

The alternative energy sources that the mutual funds invest in include renewable sources such as wind, solar, biofuel and geothermal, technologies that allow us to tap these resources, and services and technologies that enable greater efficiency in the use of energy.

The no-load alternative energy mutual fund is subject to the risk that stocks in the energy sector are subjected to and has the possibility of declining in value. The companies involved in alternative energy are typically more volatile than companies involved in other business sectors and as a result alternative energy mutual funds may be more volatile than the market as a whole. This can result in increased gains or losses.

The largest alternative energy sector that the mutual fund invests in is wind energy (36.4%), followed by Solar (21.7%) and Alternative Energy Utilities (14.0%). The top ten holdings within the fund are Iberdrola Renovabl (7.38%), EDP Renovaveis SA (6.68%), FPL Group Inc (5.39%), Scot + Southern EN (5.24%), Gamesa Corp Tecno (5.22%), Vestas Wind Systems (4.05%), Kyocera Corp (3.81), Johnson Matthey (3.76%), Renewable Energy (3.73%) and First Solar Inc (3.70%). There are currently 60 issues within the portfolio.

The minimum Initial Investment in the fund is $2,000 ($1,000 within an IRA) with subsequent minimum investments of $250. The expense ratio of the fund is 1.85%.

The fund has lagged slightly behind the Lipper Global Natural Resources Index, but that may be attributable to the funds lack of diversification and volatility. Basically, when the market as a whole is doing well the fund should exceed the indexes and during bad times the fund will experience greater losses. As the market turns around I would expect to see better than average returns for the Calvert Global Alternative Energy Fund. It is one of the better managed no-load alternative energy mutual funds.

Next we'll look at the Guinness Atkinson Alternative Energy Fund, GAAEX.

Environmentally Friendly Mutual Funds

Many people have asked me if there are any environmentally friendly mutual funds on the market. The answer is a resounding YES! We keep stressing the point that you can earn handsome profits from investing in companies that are environmentally friendly, whether through their business practices or through the products and services that they sell.

For many people, finding individual companies to invest in can be quite difficult. Everyone knows that diversification is very important to reduce the amount of risk that your investment portfolio incurs. Because of limited funds and lack of information most investors will find it difficult to find stocks to buy that will be profitable and provide enough diversification. Environmentally friendly mutual funds do this work for you. The search for businesses that are expected to be profitable, conduct their business in ways that limits the negative effects on the Earth and may even produce products or services that help make the world a cleaner place.

Environmentally friendly mutual funds are normally classified in the investment subsection called green mutual funds. There are many different environmentally friendly mutual funds available that would be considered green mutual funds.