Another reader rightly pointed out the PBW is a good one to look at too in relation to the previous post on PZD.
Wikinvest Wire
Wednesday, February 07, 2007
Adding PBW
Another reader rightly pointed out the PBW is a good one to look at too in relation to the previous post on PZD.
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4 comments:
thanks Roger.
Great service.
dnf
If I could plug a post I did a couple of weeks ago on my (and fellow colleagues') environmental blog on the PBW ETF, and comparing it with the oil services (OIH) ETF. Over the last two years, they have more or less mirrored each other. Link here. Not very promising for a green investor looking to cash in on the long-term prospects for green energy - at least not yet.
Frank great point. This makes sense in that "oh oil is up well this paves the way for alternative." And vice versa.
PBW is too broad. Includes too many companies that really aren't all that connected from too many industries.
The ETF got a nice run early last year when all the mo-mo's were buying anything "altenergy". They rode it hard and put it away wet.
Now it has been farting around for nine months going nowhere. There are probably five or ten subsectors within what's known as "altenergy". Some of them may do very well, others may go nowhere or head south.
PBW may not be the vehicle of choice, given the above.
Note that there is a new altenergy etf called PUW, a sister to PBW. For some reason, it is doing a lot better. Has a lot less direct energy exposure and more industrial and IT exposure. That may get the mo-mo treatment at some point.
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