Exchange traded funds are emerging as a rival to mutual funds that buy alternative-energy company shares. Two dozen socially responsible investing ETFs have attracted $3.2 billion in assets, according to Morningstar.
They include First Trust Global Wind Energy (FAN), PowerShares Global Wind Energy (PWND), PowerShares WilderHill Clean Energy (PBW), PowerShares Global Clean Energy Portfolio (PBD), Market Vectors Global Alternative Energy (GEX) and PowerShares Water Resources (PHO).
Rose Greene, a financial adviser based in Santa Monica, Calif., is bullish on the upside of investment opportunities emerging in clean energy. Greene, a go-to wealth manager for many in the entertainment industry and one of the nation's top financial advisers according to Barrons, has made a profitable living in socially responsible investing.Rose Greene Financial Services, recalls how President Jimmy Carter installed solar panels at the White House to make the point. Decades later, demand for greener energy is starting to intersect with improved technology, consumer acceptance and a falling price point. Nevertheless, Greene warns that any investment opportunity, no matter how close to your heart a cause may be, needs to be carefully evaluated and scrutinized. She sees "green" companies having the potential to be the next big "evil scheme," drawing comparisons to the dot-com bubble and burst of the 1990s. Her prediction calls for a flurry of IPOs during the next few years. Some will hopefully have what it takes to be the industry leaders of the future. Many others, she fears, will just be riding a temporary gravy train on their way to obscurity. "There are going to be land mines all around," she says. Greene attributes a large part of her success to being a rare progressive voice among her many conservative colleagues in the industry. Putting your money where your mouth is when it comes to social causes can be profitable, she says. Socially responsible investing is now a $3 trillion marketplace. -- Reported by Joe Mont in Boston.
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