With the iShares Dow Jones U.S. Industrials (IYJ) up about 5% this year, it makes sense for PUW to be up as well, given that it owns industrials that are also found in IYJ. Unfortunately for investors looking to invest in this alternative energy leader, PUW has meager volume of about 10,000 shares per day.
Therefore, while PUW looks to be the best of the alt-energy bunch right now, eager investors should be wary of the fund's low liquidity, as during the "flash crash" this past May, PUW briefly plummeted to 14 cents per share. For now, better bets may be found in the natural gas sector , which is considered by many to be a bridge fuel.
Overall, with potential federal legislation hanging over the sector, alternative energy ETFs look to be a murky area of investment in the near future.
-- Written by Don Dion in Williamstown, Mass.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV