“Personal Finance - Yahoo Finance” plus 2 more

Personal Finance - Yahoo Finance
The week's 10 best Personal Finance stories - Investors Business Daily
The Ric Edelman Show - 630 WMAL

Posted: 12 Jun 2010 02:38 AM PDT

It's as compelling an investment theme as you'll ever come across. With global energy demand rising sharply, oil prices at all time highs, climate change concerns growing, and new technologies enabling more efficient power extraction from natural resources, the case has never been better for investing in alternative energy companies that will help us overcome our oil and carbon-emission addictions.

But try to pick a winner from the dozens of "green energy" stocks that have emerged in the past few years and you quickly find yourself slipping from confident investor to shaky speculator. Who's to say which of the upstart, publicly traded solar energy companies, for example, will produce the efficiency breakthroughs that field has anticipated for over 20 years?

ETFs to the Rescue

For investors who are sold on the alternative energy theme but hesitant to stock-pick, the recent profusion of exchange traded funds (ETFs) couldn't have come at a better time. These low-fee funds offer diversification by holding a basket of stocks that follow a particular index, and may have tax advantages over traditional mutual funds.

There are currently six alternative energy ETFs to consider. Note the significant differences -- in investment focus, international exposure, market cap, and expenses -- in each fund's holdings:

1. PowerShares WilderHill Clean Energy Portfolio (PBW)

Listed in March 2005, PBW was the first alternative energy ETF and tracks the WilderHill Clean Energy Index. The fund holds 40 U.S.-listed companies that produce green or renewable energy and related technologies. It's focused on small-caps (69 percent weighting) and is dominated by information technology companies (41 percent of holdings). The ETF charges a 0.60 percent annual fee that will weigh on gains. The relatively volatile PBW has returned a 22.5 percent gain since its inception, but dropped just over 6 percent in the past year. See PBW's full holdings.

2. PowerShares WilderHill Progressive Energy Portfolio (PUW)

This ETF differs from PBW by focusing on companies providing "transitional energy bridge technologies" -- that is, technologies that improve the use of existing fossil fuels, rather than entire new approaches. PUW also has heavy small-cap exposure (49 percent), but offers relatively diversified sector exposure: the largest single sector, industrials, constitutes just 28 percent of the fund. Since its inception in October 2006, PUW has returned a strong 18.7 percent; it also charges a steep 0.60 percent yearly fee.

3. PowerShares Cleantech Portfolio (PZD)

This ETF tracks the Cleantech Index, which aims to capture the potential for companies that "produce any knowledge-based product or service that improves operation, performance, productivity, or efficiency, while reducing costs, inputs, energy consumption, waste, or pollution." PZD is heavily weighted toward industrials (59 percent), with 63 percent of its holdings in small-caps; like the other PowerShares ETFs, it has a 0.6 percent expense ratio. See PZD's full holdings.

4. Claymore/LGA Green ETF (GRN)

GRN launched in December 2006, and follows the Light Green Eco*Index, which is comprised of about 200 stocks that are in some way active in alternative energy. Yet a quick look at GRN's holdings reveals the world of difference between this and the PowerShares ETFs. Top holdings of GRN read more like the S&P 500: Mobil, Citigroup, and General Electric -- mega-cap corporations that allocate a certain (no doubt, growing) portion of their investment or R&D in green technologies, but are hardly "pure plays" on the alternative energy theme. GRN has a 0.6 percent yearly fee.

5. Van Eck Global Alternative Energy ETF (GEX)

Launched on May 9, 2007, GEX tracks the Ardour Global Index (Extra Liquid), which is composed of stocks in 30 publicly traded companies that obtain at least half of their revenue from alternative energy activity. GEX is unique among its peers in two key ways: emphasizing large-cap exposure (31 percent of the fund's holdings; small-caps are only 26.9 percent), and international reach (European companies constitute 47.1 percent of the fund, China/Japan 11.1 percent, and U.S. 41.8 percent). GEX charges 0.65 percent annually.

6. First Trust NASDAQ Clean Edge ETF (QCLN)

Launched in February 2007, QCLN follows the NASDAQ Clean Edge U.S. Liquid Series Index, which captures five subsectors of the alternative energy industry: renewable power generation, renewable fuels, energy storage and conversion, energy intelligence, and advanced energy-related materials. The 44 stocks in this basket are almost entirely small-caps. QCLN charges a 0.68 percent annual fee.

Building a Green Portfolio

How should you fit these ETFs into your portfolio? One option is to build a "core portfolio" of broad index ETFs using Seeking Alpha's guide to building portfolios with ETFs and then add one or more of these narrower ETFs to "tilt" your portfolio to green investing.

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The week's 10 best Personal Finance stories - Investors Business Daily

Posted: 12 Jun 2010 05:01 AM PDT

In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of June 7-11:

Leveraged ETFs magnify returns -- and risk

Exchange-traded funds that use leverage to boost returns have an appeal that can be hard to resist. If your timing is right, you can collect gains two or even three times that of the daily return of a given stock or bond index. See Jonathan Burton's Life Savings.

Cobra payment aid likely to end

Just a few months after passing comprehensive health reform, U.S. lawmakers appear willing to risk a short-term backslide in the push to reduce the number of uninsured Americans until the overhaul's major provisions take effect in 2014. See Vital Signs.

Fee disclosure is coming to your 401(k)

Investors lost a battle this week, but the war isn't over. Lawmakers in the Senate decided to drop a measure that would have forced the 401(k) industry to disclose fees to participants. But that's OK, because the numbers still favor retirement savers.See Robert Powell.

A village to raise a child? Try $222,000

They sure are cute, but raising your kids is going to set you back some serious cash, according to recently released government data. See Ruth Mantell's Diary of a Recession Baby.

The housing-market recession is not over

After years of hearing how home prices are plummeting and foreclosures are mounting, consumers want to feel hopeful about the housing market -- but maybe they're being too optimistic.See Amy Hoak's Home Economics.

New overdraft rules can save you cash

How much would you pay to avoid a moment's worth of embarrassment? It's not a hypothetical question, but one you may soon hear from your bank.See Chuck Jaffe.

Bogle's not afraid of bonds

John Bogle, the founder of the Vanguard Group and the patron saint of low-cost, long-term index-based investing, has more than 80% of his personal investment portfolio in bonds.See Chuck Jaffe.

Pop goes the bond-fund balloon

They say that bad things come in threes, and in the past decade investors have seen two market bubbles burst. Now some money-managers believe a third downturn is in the making -- in bonds.See Weekend Investor.

Low-ball salary offer: Should you take it or leave it?

The job market may be slowly starting to recover, but some salary offers are still a few years behind.See story on low-ball salary offers: should you take it or leave it?

Young job-seekers face tough haul ahead

He's been looking for a full-time job since February, but Carter Lavin's search is still going strong. While hunting for a position, the 21-year old has been keeping busy.See Ruth Mantell's Diary of a Recession Baby.

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The Ric Edelman Show - 630 WMAL

Posted: 12 Jun 2010 06:48 AM PDT

The Ric Edelman Show

Saturday: 10:00 AM - 12:00 PM

Ric Edelman is the #1 Independent Financial Advisor in the nation, as ranked by Barrons. For over 20 years Ric has shared his personal finance advice and is heard by millions of radio listeners around the country.

Each week, Ric answers your questions to help you on the path toward achieving your financial goals. Learn what you need to do to retire in comfort; how to pay for college; why most people should never pay off their mortgage; how to get out of debt; when to lease a car; how to determine if you have the right insurance; choosing a financial advisor; understanding wills, trusts and estate planning; and, of course, the steps needed to help become a successful investor with low risks, low costs and using a competitive strategy.

Ric is a #1 New York Times best-selling author of seven books on personal finance, including Rescue Your Money, The Lies About Money; Ordinary People, Extraordinary Wealth; and the personal finance classic The Truth About Money. He is also a frequent television guest, noted public speaker, publisher of Inside Personal Finance, a 16-page monthly newsletter, and founder and chairman of Edelman Financial Services LLC.

One of the most highly acclaimed financial advisors in the country, Ric was inducted into Research Magazines Financial Advisor Hall of Fame in 2004. Ric and his firm have won more than 70 financial, business, community and philanthropic awards, and Edelman Financial manages more than $4.5 billion for nearly 14,000 families nationwide through 12 offices in four states.

For nine years, Ric taught personal finance at Georgetown University. His commitment to teaching consumers about personal finance, along with his wit and humor, has established him as one of the most informative and entertaining financial professionals in America.

For more of Rics advice, visit RicEdelman.com

Join Ric Edelman every Saturday from 10am-12n on 630 WMAL.