Investing in Wind Companies

Mr. Lynch: Is there any way to invest in the booming area of wind? It seems as though there are very few companies in this area and all of them are large, like GE. — Thanks, Kevin W. Saratoga Springs, N.Y.

Kevin, I think you have been reading my mind. I have been looking for a way to play the wind boom for a number of years and you are correct that there are very few companies (at least in the U.S.) and the most well known ones are large companies like GE that you do not necessarily want to own just because they have a large wind division. I think the market, at this time, is looking at GE as a finance company and wind is actually a small part of their total revenues.

However, I have recently found a potential candidate that may fit your wind investment desires. There is an exchange traded fund (ETF) with the symbol “FAN.” It is like a mutual fund in that it has a diversified approach (a major decrease in one company will not have a serious effect on your portfolio) of owning many companies in the industry and it trades on an exchange just like a stock.

I went to their website and extracted some information that you may find interesting. The table below lists all the holdings of FAN, their individual symbols and the percentage of the total ETF that company represents.

If you want more detailed information you can get it at their website.

As you can see, if you really want a way to participate in the growth of the wind business this ETF certainly has holdings in all of the significant companies in the industry worldwide. I am sure there will be other ways to invest in this industry in the future, but for now, this appears to me to be the most suitable for most investors.

All Companies currently in the ETF – FAN

 

Security Name

Ticker or CUSIP

Weighting

Vestas Wind Systems

VWS.DC

7.48%

Gamesa Corporacion Tecnologica, S.A. (Gamesa)

GAM.SM

7.25%

Hansen Transmissions

HSN.LN

7.23%

REpower Systems AG

RPW.GR

6.18%

Nordex AG

NDX1.GR

5.81%

Broadwind Energy, Inc.

BWEN

5.31%

Babcock & Brown Wind Partners

BBW.AU

4.60%

Clipper Windpower PLC

CWP.LN

4.24%

Theolia SA

TEO.FP

4.18%

Fersa Energias Renovables SA

FRS.SM

3.16%

Japan Wind Development Co., Ltd.

2766.JP

2.99%

Greentech Energy Systems

GES.DC

2.98%

EarthFirst Canada Inc.

EF.CN

1.19%

E.ON AG (ADR)

EONGY

1.15%

Air Energy S.A.

AIR.BB

1.15%

Royal Dutch Shell Plc (ADR)

RDS/A

1.14%

BP Plc (ADR)

BP

1.13%

Renewable Energy Generation

RWE.LN

1.12%

RWE AG

RWE.GY

1.11%

Siemens AG (ADR)

SI

1.10%

Endesa, S.A.

ELE.SM

1.08%

Iberdrola S.A.

IBE.SM

1.06%

Alstom

ALO.FP

1.05%

MITSUI & CO., LTD.

8031.JP

1.03%

General Electric Company

GE

1.02%

Iberdrola Renovables

IBR.SM

0.98%

Western Wind Energy Corp.

WND.CN

0.95%

EDF Energies Nouvelles S.A.

EEN.FP

0.92%

AGL Energy Limited

AGK.AU

0.91%

NRG Energy Inc.

NRG

0.88%

FPL Group, Inc.

FPL

0.86%

The AES Corporation

AES

0.85%

Acciona S.A.

ANA.SM

0.83%

Allegheny Technologies, Inc.

ATI

0.83%

AB SKF

SKFB.SS

0.83%

Energias De Portugal S.A.

EDP.PL

0.82%

China High Speed Transmission Equipment Group Co., Ltd.

658.HK

0.78%

Centrais Eletricas Brasileiras S.A.

CAIFY

0.70%

Areva

CEI.FP

0.65%

Woodward Governor Company

WGOV

0.63%

Alliant Energy Corporation

LNT

0.62%

Federal-Mogul Corporation

FDML

0.62%

Trinity Industries, Inc.

TRN

0.61%

Kaydon Corporation

KDN

0.59%

Zoltek Companies, Inc.

ZOLT

0.57%

American Superconductor Corporation

AMSC

0.57%

Capstone Turbine Corporation

CPST

0.50%

Terna Energy SA

TENERGY.GA

0.47%

Canadian Hydro Developers, Inc.

KHD.CN

0.47%

Ameron International Corporation

AMN

0.46%

C. Rokas SA

ROKKA.GA

0.45%

Otter Tail Corporation

OTTR

0.44%

Conergy AG

CGY.GR

0.43%

Boralex Inc.

BLX.CN

0.43%

El Paso Electric Company

EE

0.43%

Harbin Power Equipment Company Ltd.

1133.HK

0.40%

Composite Technology Corporation

CPTC

0.22%

Polish Energy Partners SA

PEP.PW

0.21%

Heroux-Devtek Inc.

HRX.CN

0.20%

Novera Energy, Plc

NVE.LN

0.20%

China Wind Systems, Inc.

CWSI

0.20%

China WindPower Group Limited

182.HK

0.20%

Shanghai Prime Machinery Company Ltd.

2345.HK

0.19%

Gurit Holding AG

GUR.SW

0.18%

Innergex Renewable Energy, Inc.

INE.CN

0.18%

Morphic Technologies AB

MORPB.SS

0.15%

GreenHunter Energy, Inc.

GRH

0.13%



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I have worked, for 33 years as an independent analyst and investor in small emerging technology companies. I have been actively involved in following developments in the renewable energy sector since 1977 and am regarded as an expert in this field. I was the contributing editor for the past 17 years to the Photovoltaic Insider Report, the leading publication in Photovoltaics industry that was directed at industrial subscribers, such as major energy companies, utilities and governments around the world. I currently am a consultant to a number of technology and solar related companies. I can be reached via e-mail at: solarjpl@aol.com. Visit my website for the promotion of solar energy - www.sunseries.net

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