Low Risk Investing in Clean Technology and Green Energy

Investing in Clean Technology is fraught with high risk as is the case with any new industry. There is a huge difference between DotComs and Green companies.Green companies require a long gestation and large amounts of capital compared to dotcom startups. This means that there are only a few pure play companies which survive their initial birth. Most of these companies go out of business or get absorbed by larger companies. Some examples are:

1. Ausra getting bought by French giant Areva
2. Timminco almost going out of business
3. Verasun getting bought by oil refiner Valero

Investing Through ETFs

The clean energy stocks are much more riskier than normal stocks as some industries get wiped out with change in government policies and market dynamics - the best example being the Ethanol sector. However the rewards of investing are equally great as a person investing in First Solar IPO would have gained more than 500% in 4 years. However for a conservative investor, Green Technology Investing can be done through Clean Technology ETFs which are listed here.

1. iShares S&P Global Clean Energy Index(ICLN)
2. First Trust NASDAQ Clean Edge Green(QCLN)
3. PowerShares WilderHill Clean Energy(PBW)
4. PowerShares Glbl Clean Enrgy Port (PBD)
5. PowerShares Cleantech Portfolio (PZD)
6. Market Vectors Glbl Alter. Engy ETF Trst(GEX)

Note there are sector specific ETFs like TAN (Solar),PWND( Wind), PTRP (Transportation), NLR(Nuclear Energy) and PHO(Water) for investors who want sector specific exposure

Foreign Exposure Necessary

It has been universally acknowledged that the Green Technology is going to be one of the Biggest Industries in the next decade. The country which leads in in clean energy has a strong chance of being the Leader of the 21st Century. However USA is lagging in Clean Technology compared to China which is making rapid progress.While investing in Green companies it is important to have a large foreign exposure. There are excellent non-US Green companies like Kurita Water company, Toshiba which could provide fantastic returns in the future.

Investing Through Conglomerates

You can also invest in Clean Technology by investing in Global Conglomerates like Siemens, Samsung which are making Huge Investments in Green Technology

Abhishek Shah
http://greenworldinvestor.com

Blog on the Climate Change,Clean Technology,Investing Economics,Technology and India

Article Source: http://EzineArticles.com/?expert=Abhishek_Sh

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