Wind

How to Invest in Wind

Wind power involves harnessing the natural energy of wind, and converting and storing this energy into a useful form. Wind energy has traditionally accounted for an insignificant portion of global energy usage, but the market share of this source has grown significantly in recent years.

Wind is not a traditional commodity, as it is not tangible in nature and cannot be owned directly. But the success of wind power and demand for this power source has a direct impact on the prices of a number of commodities, ranging from energy resources to agricultural goods.

Direct investments in wind are obviously not possible, but there are multiple options for those seeking to gain exposure to wind power. One option involves buying stocks of companies engaged in various aspects of the wind power industry; there are also multiple ETFs focusing on this sector.

Ways to Invest in Wind

There are 2 ways to invest in Wind: ETFs and Stocks. Click on the tabs below to learn more about each alternative.

What are Wind ETFs?

Investing directly in wind is obviously not possible, but there are multiple ETFs that offer exposure to the wind power industry. These include:

  • First Trust Global Wind Energy Index Fund (FAN)
  • PowerShares Global Wind Energy Portfolio (PWND)

Each of these funds includes both domestic and international stocks, and includes exposure to companies engaged in various components of the wind power business. For investors looking to bet on increased adoption of this energy source in the future, either ETF will accomplish that objective.

How to Buy Wind Stocks

Investors looking for exposure to wind power have a number of options, as there are multiple publicly-traded companies that are classified in the wind power industries. These companies may include firms that are active in the development or management of a wind farm, the production or distribution of electricity generated by wind power, involvement in the design, manufacture or distribution of machinery or materials designed specifically for the wind energy industry.

Many wind power companies are listed on exchanges in Europe, but there are several U.S. stocks as well. Wind power stocks include:

  • EDP Renovaveis SA (EDPR.PL)
  • Iberdrola Renovables (IBR.SM)
  • Vestas Wind Systems (VWS.DC)
  • China WindPower Group Limited (182.HK)
  • Broadwind Energy, Inc. (BWEN)

See a more complete list of options by examining the holdings of the First Trust ISE Global Wind Energy Index Fund