Does alternative energy etf offer good trading and investing opportunity ?

How to trade them
with other commodity etf shares

Alternative energy etf shares are orientated to areas of sun generated energy and wind generated energy. This group of energy etfs is part of my list of exchange traded funds I monitor regularly for trading opportunities.

These exchange traded funds offer only few opportunities during a year but their etf trends could last long and if they are catched and entered early, they could generate huge profits for any ETF trader or ETF investor. So I think it could be good to have them in list of exchange traded funds that could be used for selection of best etf for trading.

Solar ETF and Wind ETF

TAN is The Guggenheim Solar ETF which track index based on companies within the solar energy industry: companies that produce solar power equipment, companies that produce fabrication products or services for solar power equipment producers, companies that supply raw materials or components to solar power equipment producers or integrators; companies that derive a significant portion of their business from solar power system sales, distribution, installation, integration or financing; and companies that specialize in selling electricity derived from solar power. There are about 33 companies in index.

Companies selected for FAN ETF (First Trust Global Wind Energy) tracking index are identified as providing goods and services to the wind energy.

I have these two ETF shares in my ETF List . I scan this list for active investing and trading opportunities I trade. I like to compare them with commodity ETFs I have also in my ETF List.

Let's look to their charts.

As you can see, these two etfs were not good choice for investors . They did not produce any return in last years.

If you compare their charts with Energy ETF - DBE, representing natural resources for energy, you find that DBE produced more opportunities for active investors and traders.

I base my ETF Trading strategies on relative strength analysis. From this perspective I have to say that main trading ideas in this area were shorting of TAN and FAN ETFs.

This situation can change in the future, but today (2011) I prefer to trade ETFs where is more opportunity for profits then in these two etfs.

Return from alternative energy etf back to Commodity ETFs

Return from alternative energy etf back to Simple-stock-trading.com