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Earth Day 2015: These 10 Funds Prove Investors Can Beat The Stock Market By Going Green

  The 10 solar and These ETFs easily eclipsed the S&P 500’s 2.6% uptick, through April 20. Companies in these ETFs are projected to grow earnings at an average annual rate of 12% to 24% over the next five years compared with 10% for the S&P 500. Yet many of their valuations are still cheaper than S&P.

WASHINGTON, DC – APRIL 18: A general view of atmosphere at the Global Citizen 2015 Earth Day Courtesy of Partner Citi at National Mall on April 18, 2015 in Washington, DC. (Photo by Paul Morigi/Getty Images For CITI)

Top 10 ETFs for Earth Day

Listed in descending order by assets under management.

ETF NameTickerTotal Assets in $ Millions% Expense Ratio% Return YTDPrice/ Earnings ForwardPrice/ BookPrice/ Sales% Dividend Yield% Proj EPS Growth 5 Year
Guggenheim Solar ETFTAN440.420.7140.7615.812.011.751.4417.21
PowerShares WilderHill Clean Energy ETFPBW146.260.712.1725.51.961.432.7321.49
First Trust NASDAQ® Cln Edge® Grn Engy ETFQCLN88.330.612.6523.742.582.10.814.83
Market Vectors® Global Alt Energy ETFGEX87.530.6213.5419.542.181.450.1917.72
iShares Global Clean EnergyICLN85.580.4828.8219.431.841.872.3120.17
PowerShares Cleantech ETFPZD76.380.676.0822.232.811.580.811.99
PowerShares Global Clean Energy ETFPBD71.280.7614.4117.771.741.410.9620.63
First Trust ISE Global Wind Energy ETFFAN39.930.611.417.141.070.842.3416.47
PowerShares WilderHill Prog Engy ETFPUW33.820.77.6718.821.320.71.8412.86
Market Vectors® Solar Energy ETFKWT26.650.6630.3113.681.761.580.5523.81
SPDR® S&P 500 ETFSPY177,886.790.092.5518.172.591.731.9110.18
Year-to-date returns through April 20, 2015
Source: Morningstar

Among this list, John Divine, assistant editor at InvestorPlace.com in Rockville, Md. recommends ICLN for its cheap expense ratio of 0.48%, which is much lower than the category average of 0.64%.

“The higher the fees, the more you’re missing out on compounding returns, which adds up to a pretty substantial opportunity cost over the long-term,” Divine said. “There have been numerous studies showing that funds and managers that charge higher fees are not able to compensate for their high fees with better performance. So there’s no logical reason to own expensive funds or ETFs over the long-term.”

“ICLN pays out a modest dividend, is diversified across market caps, and owns companies that actually make money,” Divine added.

Divine, however, dislikes how ICLN is heavily concentrated in Asia, especially China, with a 43% weighting in the ETF. The largest holding, Chinese solar company Hanergy Thin Film Power, accounts for 20% of the portfolio after it exploded about 550% in the past year.

“If Hanergy comes back down to earth, ICLN will be in for a rude awakening,” Divine warns. “And with several analysts claiming Hanergy stock is wildly overvalued at current levels, a selloff is a real possibility.

Currently it’s the most valuable solar company in the world, and some have speculated the stock price has been manipulated.”

Trang Ho is the founder of Key Financial Media LLC, which produces content and thought leadership for financial advisors and investment strategists.

stock market – Bing News

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