The alternative energy sector escaped the chopping block in the U.S. fiscal cliff bill. With billions of subsidies slated to aid the sector, clean energy related exchange traded funds are positioned to capture the growth.
The new budget deal includes a one-year extension on tax credits of $12.1 billion for the wind-energy industry, Fox News reports. The Production Tax Credit was first implemented in 1992 and has been extended over the past couple of years to include wind companies.
According to the American Wind Energy Association, if the government ended the tax credits, it would have cost the economy 37,000 in U.S. jobs and layoffs.
Moreover, a provision that allows solar installers to receive subsidies in cash grants was not removed, according to the Associated Press.
Warren Buffet’s MidAmerican Energy Holdings also recently gave the green light for the renewable energy sector, setting aside up to $2.5 billion on solar photovoltaic operations, reports Pilita Clark for the Financial Times.
Some alternative energy ETFs include:
- PowerShares WilderHill Clean Energy Portfolio (PBW)
- PowerShares Cleantech Portfolio (PZD)
- PowerShares Global Clean Energy Portfolio (PBD)
- Market Vectors Global Alternative Energy ETF (GEX)
- Guggenheim Solar ETF (TAN)
- iShares S&P Global Clean Energy Index Fund (ICLN)
- Market Vectors Solar Energy ETF (KWT)
- First Trust ISE Global Wind Energy Index Fund (NYSEArca: FAN)
- PowerShares Global Wind Energy Portfolio (PWND)
For more information on the clean, alternative energy sector, visit our clean energy category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.