A Good Week for Green Funds

With the holiday season upon us, it is important to recognize those people trying to make this world a better place. In honor of that goal, today's article continues my annual holiday tradition of reviewing the best- and worst-performing socially, religiously and environmentally friendly funds.

The best performer for the five trading days ending Dec. 20 is Powershares WilderHill Clean Energy Portfolio(PBW Quote). The exchange-traded fund added another 3.13% this week to an already phenomenal year.

Nearly half the fund is invested in alternative energy sources. The largest holdings include First Solar (FSLR Quote), Suntech Power Holdings (STP Quote) and Evergreen Solar (ESLR Quote).

Some of the biggest contributors to the fund's performance this week were two ethanol producing companies. As President Bush signed the Energy Independence and Security Act of 2007 into law, these companies' stock prices rebounded from what has been an abysmal year. The bill requires the quadrupling of alternative biofuel usage over the next 15 years. The fund's holdings of Pacific Ethanol(PEIX Quote) and Verenium(VRNM Quote) bounced 51.33% and 18.76%, respectively.

The second-best performer this past week was the First Trust NASDAQ Clean Edge US Liquid Series Index Fund(QCLN Quote), which rose 1.95%. This fund also benefited from its holdings of Pacific Ethanol and Verenium. Two additional winning positions include Aventine Renewable Energy Holdings (AVR Quote), rising 26.24%, and China's Yingli Green Energy (YGE Quote), up 15.14%.

While most of the funds on the best-performing list select stocks based on environmentally friendly criteria, the worst performer list is littered with funds that screen out socially irresponsible equities. The worst performer was the brand-new (DFCCX Quote)DFA CSTG&E International Social Core Equity Portfolio (DFCCX), which lost 4.17% for the week.

Losing slightly less, the (DEUFX Quote)Domini European Social Equity Portfolio (DEUFX) shed 3.68% investing in 25.5% U.K., 14.4% French and 12.3% German stocks. Among its holdings that were hardest hit are Turkish Ihlas Holding, down 12.61% on reports implying that it would be difficult to get a new banking license after its Islamic bank failed, and Poland's gas monopoly, Polskie Gornictwo Naftowe I Gazownictwo SA, which leaked 9.48% of its value after a price hike was rejected.

The third-worst performer, down 3.68% for the period, is the (VCSOX Quote)Valic Social Awareness Fund (VCSOX). This fund excludes companies in the nuclear energy, military weapons, alcohol, tobacco and gambling casino industries. The worst offender in its portfolio is Macy's (M Quote). The retailer's 8.94% decline could be blamed on global climate change, as bad weather contributes to a weak holiday season already suffering from high gasoline prices eroding discretionary spending.

Another holding, National Oilwell Varco (NOV Quote), sank 8.25% after announcing the acquisition of Grant Prideco(GRP Quote).

Best-Performing Socially Responsible Funds Ranked by returns for the week ending Dec. 20
Fund	Ticker	Rating	Fund Type	1 Week Total Return
Powershares WilderHill Clean Energy Portfolio	PBW	C+	ETF	3.13%
First Trust NASDAQ Clean Edge US Liq Ser Index Fund	QCLN	U	ETF	1.95%
Winslow Green Growth Fund	WGGFX	C	Open-End	0.45%
Ancora Homeland Security Fund	ANHCX	U	Open-End	0.32%
Powershares Global Clean Energy Portfolio	PBD	U	ETF	0.22%
PowerShares Cleantech Portfolio	PZD	A+	ETF	0.17%
Winslow Green Solutions Fund	WGSLX	U	Open-End	-0.40%
Fidelity Select Environmental Portfolio	FSLEX	C	Open-End	-0.42%
Citizens Small Cap Core Growth Fund	CSCSX	C-	Open-End	-0.51%
Legg Mason Partners Social Awareness Fund	SSIAX	D	Open-End	-0.52%
Source: Bloomberg

For an explanation of our ratings, click here.

Worst-Performing Socially Responsible Funds Ranked by returns for the week ending December 20
Fund	Ticker	Rating	Fund Type	1 Week Total Return
DFA CSTG&E International Social Core Eqty Portfolio	DFCCX	U	Open-End	-4.17%
Domini European Social Equity Portfolio	DEUFX	U	Open-End	-3.68%
VALIC I - Social Awareness Fund	VCSOX	C-	Open-End	-3.19%
MMA Praxis International Fund	MMPNX	A-	Open-End	-3.13%
New Alternatives Fund Inc	NALFX	A-	Open-End	-2.93%
Professionally Managed Portfolios - Portfolio 21	PORTX	B-	Open-End	-2.67%
Citizens Global Equity Fund	WAGEX	B+	Open-End	-2.56%
VALIC II - Socially Responsible Fund	VCSRX	C-	Open-End	-2.51%
MMA Praxis Value Index Fund	MVIAX	D-	Open-End	-2.48%
AXA Enterprise Socially Responsible Fund	EGSBX	D-	Open-End	-2.21%
Source: Bloomberg

For an explanation of our ratings, click here.