Two ETFs Looking For a Revival

This ETF contains a host of solar names among its top holdings, including Suntech Power Holdings(STP), Evergreen Solar(ESLR), JA Solar Holdings(JASO) and First Solar(FSLR).

Welch notes that some of these companies are making big strides in their operations, but their stocks have become subject to speculation at times.

"First Solar has become a favorite of the momentum players," he says.

The fund also holds some fuel cell names such as Energy Conversion Devices(ENER) and FuelCell Energy(FCEL).

Welch finds this area of clean energy to be especially attractive. "Fuel cells are intriguing because ethanol is proving to not be a large-scale viable solution as an alternative energy source," he said.

For investors looking to get into clean energy, Welch also likes the PowerShares Global Clean Energy Fund(PBD) due to the international exposure that the ETF affords its investors. The fund has top holdings that include REpower Systems, Nordex and Q-Cells.

>To order reprints of this article, click here: Reprints