Clean-Energy ETFs Volatile, but Hold Potential

Among the individual components of these clean-energy ETFs, Ted Sullivan, an analyst for Lux Research, likes Applied Materials(AMAT Quote), a top holding of the WilderHill Clean Energy Fund. The supplier of products and services to the semiconductor industry has seen its stock soar 21.4% already this year and was recently upgraded by Caris & Company, which sees promise in its solar-power business.

Sullivan also likes First Solar and Suntech Power Holdings(STP Quote). First Solar is a top holding of the Market Vectors ETF as well as the WilderHill Clean Energy Fund. Suntech is a top holding of the Market Vectors fund.

"First Solar is an absolute cost leader and will continue to be for the next five or so years," he says. "Suntech has done a good job building up its market very quickly."