This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Green ETFs Face Off

NEW YORK ( TheStreet) -- PowerShares WilderHill Progressive Energy (PUW) has led PowerShares WilderHill Clean Energy (PBW) by a wide margin over the past three months. PUW's return was 19.20% compared to only 0.76% for PBW.

Much of the gap between the ETFs came since the end of July, as PUW's return rose 12.2% while PBW rose 1.1%.

The stocks among PUW's top 10 holdings that provided the lift were Clean Fuels (CLNE - Get Report), up about 50%, along with Owens Corning (OC) and Chesapeake Energy (CHK - Get Report), up about 30%. Methanex (MEOH) also had a portfolio-outperforming return of just under 20%.

PBW's fund had similar returns from its top 10 holdings. Fuel Systems (FSYS) had return of nearly 50%, while Echelon (ELON) gained more than 50%. Cosan (CZZ) and International Rectifier (IRF) both gained more than 20%.

On the downside, PUW's worst performing top 10 holdings were flat, while PBW saw Applied Materials (AMAT) and SunPower (SPWRA) lost ground.

However, the current top 10 holdings don't tell the entire story. As of June 30, PBW's top 10 was dominated by solar stocks, including First Solar (FSLR - Get Report), Yingli (YGE), Evergreen (ESLR) and JA Solar (JASO). Over the aforementioned period, JASO lost 20%, FSLR lost nearly 15%, and ESLR lost more than 5%.

Broadwind Energy (BWEN - Get Report), the former No. 1 holding on June 30, fell nearly 25% and went from 3.14% of PBW to 2.52% on Sept. 14.

PUW has seen changes among its top 10 as well, but it more closely resembles its June 30 composition. A couple of stocks moved out of the top 10, including Southwestern Energy (SWN) and USEC (USU). However, these were more allocation changes than a price decline, as SWN was flat and USU actually gained 30% over the period.

PowerShares ETFs have performed well in many cases, but investors need to pay attention to the holdings in these funds because they will shift over time -- and that will alter results.

Since PUW's inception in October 2006 (PBW was launched in March 2005), the two funds have tracked very closely, with occasional under- and over-performance, until last fall. From its Nov. 19 low, PUW gained 105% compared to a 71% return for PBW.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BWEN $1.78 0.00%
CLNE $2.50 0.00%
CHK $1.59 0.00%
FSLR $60.99 0.00%
PBW $3.63 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs