Powershares Wilderhill Clean Energy Portfolio (PBW)

Sorry for the delay in the series, but today we will continue to look at the Top No Load Alternative Energy Mutual Funds by looking at Invesco PowerShares WilderHill Clean Energy Portfolio (PBW).

The Invesco PowerShares WilderHill Clean Energy Portfolio (PBW) is a no-load alternative energy mutual fund that seeks results that generally correspond to thye proce and yield of he WinderHill Clean Energy Index before fees and expenses. The WinderHill Clean Energy Index is designed to deliver capital growth by selecting companies that focus on clean and generally renewable sources of energy and the technologies that create greener energy.

The fund is mostly non-diversified holding securities in only 51 alternative energy companies. Because of it's non-diversified nature the Invesco PowerShares WilderHill Clean Energy Portfolio (PBW) will experience greater volatility than the market as a whole. This means that this no-load alternative energy mutual fund will experience greater losses than average on down swings and greater profits than average on upswings.

This alternative energy mutual funds top ten holdings are:
Yingli Green Energy Holding Co. Ltd 4.82%
Fuel Systems Solutions Inc. 4.57%
Cosan Ltd (CL A) 4.30%
Trina Solar Ltd (ADS) 4.29%
ReneSola Ltd (ADS) 3.61%
Suntech Power Holdings Co. Ltd (ADS) 3.39%
JA Solar Holdings Ltd (ADS) 3.16%
Ormat Technologies Inc. 3.10%
OM Group Inc. 3.03%
American Superconductor Corp. 3.02%

The Invesco PowerShares WilderHill Clean Energy Portfolio (PBW) alternative energy mutual fund invests across multiple investment styles and capitilizations with the largest groups being Small-Cap Growth (57.31%) and Mid-Cap Growth (24.93%).

This alternative energy mutual fund features a low expense ratio of 0.70%.

All told this is a very solid no-load alternative energy mutual fund that should be considered if you have a long investment horizon that can tolerate swings in value.

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, Part2 - GAAEX

Today we'll continue our look at the best no-load alternative energy mutual funds and ETFs with an analysis of the Guinness Atkinson Alternative Energy Fund (GAAEX).

The Guinness Atkinson Alternative Energy Fund seeks long-term capital appreciation by investing in equities of businesses that are involved in alternative energy or energy technology sectors. They believe that a growing demand for energy, limited power production capacities, rising energy costs and environmental awareness are going to lead to profits for these businesses and the alternative energy mutual funds that invest in them.

The Guinness Atkinson Alternative Energy Fund provides investors with the opportunity to take part in the shift toward alternative and renewable energy sources. Typically, the fund invests 40 to 60 stocks of companies that receive more than half their revenues from alternative energy or alternative energy technology.

Alternative energy typically includes power created through solar, hydroelectric, wind, biomass, biofuels, geothermal and tidal waves. Alternative energy technology includes the technologies that allow us to tap into alternative energy sources whether through storage and transportation, and technologies that can enable us to conserve energy or allow more efficient use of energy.

The Guinness Atkinson Alternative Energy Fund invests in securities of foreign countries and may have additional risk and volatility due to political, economic and currency risks and differences in accounting methods. The Guinness Atkinson Alternative Energy Fund is a non-diversified fund. This means that the funds assets are concentrated in relatively few companies which will increase both the opportunity for gain and the risk of loss.

The Guinness Atkinson Alternative Energy Fund invests a significant percentage of its assets in Solar (46.8%), Wind (28.45$) and Hydro (9.48) sources. Its top ten holdings as of 12/31/2008 are SMA Solar Technology Ag (4.34%), JA Solar Holdings Co. Ltd (4.06%), Q-Cells AG (3.94%), Solarworld AG (3.9%), Echelon Corporation (3.81%), SunPower Corporation (3.75%), Iderdola Renovables (3.67%), Vestas Wind systems A/S (3.66%), Suntech Power Holdings Co. Ltd. (3.66%), First Solar, Inc. (3.50%).

Due to the funds lack of diversification and propensity for investing in small companies the fund has recently seen greater losses than the market as a whole. This is to be expected. I would further expect the fund to achieve greater gains during upswings.

The funds expense ratio is a relatively low 1.69%, and there is no sales fee. As the economy recovers, this may become one of the highest returning alternative energy mutual funds available on the market.

We will continue our analysis of the best no-load alternative energy mutual funds with Invesco Powershares Global Clean Energy Portfolio (PBD).

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.

Mutual Funds: What Are Loads?

Mutual funds are broadly categorized as load funds and no-load funds. Basically, a load is the sales charge associated with buying the mutual fund. Typically, when you buy a mutual fund through a financial planner or broker you will pay a load, which is pocketed by the salesperson or another middleman.

Historically, there has been no significant difference in returns for load and no-load funds. When the load fees are factored into the mutual funds returns the no-load funds have a higher return. This is simply logical if you think about it. If two funds have the same return (as load and no-load mutual funds do) and you have to pay a sales commision on one (the load fund) than the other (the no-load mutual fund) will earn you more in the long run. As an example, if you invest $100 into two funds and each pays you a $10 return you've earned 10%. If one of them charges you $1 when you withdraw you earnings it's real return is only 9%. 10% is better than 9%, no-loan mutual funds are better than load mutual funds.

The most basic type of load is a front-end load mutual fund. With a front-end load mutual fund you pay a portion of your initial investment to buy the fund. Usually front-end load mutual funds charge 3-9% for the priveledge to buy the fund. One a $1,000 investment you lose $30 to $90 before you even own shares. Nice.

Invstors began to realize that paying front-end loads greatly diminished the amount of their investment. Mutual fund companies responded with Back-end loads pay the same 3-9% sales commision, but you only pay when you withdraw the money. Now, if the value of the investment goes up you pay more than you would with a similar front-end load. If the value of the investment goes down you still pay the fees and lose even more of your initial investment.

Even better than back-end loans are contingent deferred sales loads. Basically this is a back-end load mutual fund that says that every year you own the fund your load amount goes down by 1%. Now, this sounds like a good idea if you are planning on holding the fund as a long term investment. Salesmen will often market these saying that you don't have to pay any load, however, every year your account is charge with a 12b-1 marketing fee of about 1%. So, you pay 1% every year you own the fund. For example, a mutual fund has a 5% back-end load that diminishes by 1% annually. You hold the fund for two years. You've paid 2% in 12b-1 fees and now have a 3% back-end load left to pay. Still sounds like 5%, doesn't it? This gets even better if you hold the fund longer than 5 years. You pay that 1% per year regardless of how long you hold it. Really makes you want to be a long term investor, right?

The answer is to look for "no-load" mutual funds. They simply don't charge a load, saving you money and increasing your earnings in the long run.