With green energy technology becoming increasingly popular around the world, solar energy mutual funds are a profitable investment option.
Solar, wind, and geothermal production are expected to double over the next 25 years, according to the Energy Information Administration. Clean energy will account for 33% of all U.S. electricity generation by 2016 – up from 16% today, according to the same report.
And recent news from the EPA has had a positive impact on the alternative energy industry. The agency announced it will regulate for lower carbon emissions from coal-based power plants. It also is becoming stricter on greenhouse gas emissions.
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Here we explore five solar energy mutual funds that allow investors to tap into the alternative energy sector…
Spotlighting Five Solar Energy Mutual Funds
1. Firsthand Alternative Energy Mutual Fund (ALTEX)
Firsthand Alternative Energy is based in the U.S. and is an open-end fund with an objective of long-term growth. At least 80% of the fund's assets are invested in alternative energy like solar, and alternative energy technology companies in many countries around the world.
ALTEX shares are up 9.12% this year so far, and up 67% since this time last year. The current price is $7.13 per share.
2. Guinness Atkinson Alternative Energy Fund (GAAEX)
Guinness Atkinson Alternative Energy Fund is non-diversified and invests in companies domiciled both in the U.S. and foreign countries, including companies domiciled or traded in emerging markets.
The fund traded at $4.12 per share on May 2. The year to date return is 3.01%, and 45.74% over the last twelve month period. GAAEX had net assets of $25.11 million as of March 31.
3. Shelton Green Alpha Fund (NEXTX)
NEXTX is an open-end fund based in the United States. At least 80% of the fund's assets are invested in ADRs and U.S. stocks, and are committed to addressing some of the most important green issues facing the world today.
As of May 2, Shelton Green stock was trading at $14.86 per share with a 52-week low of $10.34 and high of $16.18. Shares have been flat so far in 2014 with a 0.13% decline, and shares are up 42.5% over the last twelve months.
4. Alger Green Fund Class A (SPEGX)
Alger Green A is an open-end fund based in the United States. At least 80% of assets are invested equity securities of different companies that carry out environmentally sustainable business. The fund also invests in growth stocks.
SPEGX shares traded at $8.70 per share on May 2, down 2.36% this year and up 14.32% since this time last year. The fund had net assets of $77.11 million as of March 31.
5. Brown Advisory Sustainable Growth Fund Investor Shares (BIAWX)
BIAWX seeks capital appreciation with at least 80% of its net in equity securities of environmentally sustainable domestic companies. It invests primarily in the securities of medium and large cap companies that have prospects for above average earnings growth, and that effectively implement environmentally sustainable business strategies to drive such growth.
Shares for this solar energy mutual fund are down 3.22% in 2014, and up 18.27% over the last twelve month period. BIAWX stock cost $13.57 per share on May 2.
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