The Guinness fund has favored solar stocks since 2006, which has dragged the fund down in the past year. The portfolio also has a little exposure to wind power with turbine maker Vestas Wind Systems (VWDRY).
Picking a fund requires investors to predict the direction of alternative energy. If you think solar energy will lead a rebound then the Guinness fund might be the best choice. If you think green technology will take the limelight, the Winslow Green fund might be the way to go.
A year ago, I called solar stocks and exchange-traded funds faddish. They had had a great run, but they seemed overextended. After all, solar power won't be affordable for widespread use for years. The companies' stocks have dropped more than the broader market in the past year.
Investors need to realize that adding alternative energy companies to a diversified portfolio will create volatility. This helps on the way up, but it will hurt on the way down.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV