What is the PowerShares Cleantech Portfolio ETF?
The PowerShares Cleantech Portfolio ETF is an exchange traded fund which will be attempting to track the performance of Cleantech Index CTIUS Index. The Cleantech Index is the leading stock market index which reflects the ever growing global demand for clean technology (cleantech) products and services. By tracking the market performance of the leading publicly traded cleantech companies, CTIUS is the industry standard index that underlies a growing range of financial products (such as exchange traded funds). This Cleantech index therefore provides investors with an easy, cost-effective, and liquid means to invest in the broad cleantech investment category
What are the constituent details of the Cleantech Index CTIUS Index?
The Cleantech Index (CTIUS) is a modified equal-dollar weighted index of the leading cleantech companies worldwide from a broad range of industry sectors. "Cleantech" is defined as knowledge-based products and services that improve operational performance, productivity or efficiency; while reducing costs, resource and energy consumption, waste or pollution. The Cleantech index was established with a base value of 500.00, at market close, December 31, 1999. The Index is rebalanced every March, June, September and December. The Index was created by and is a trademark of Cleantech Indices LLC.
The Cleantech Index CTIUS Index is comprised of 76 companies which are global leaders in cleantech innovation and commercial deployment across a broad range of industry sectors: from alternative energy and energy efficiency to advanced materials, from air & water purification, eco-friendly agriculture/nutrition to power transmission, etc.
The index is listed on American Stock Exchange (AMEX).
Geographical Exposure is as follows: United States 52.55% , France 4.72%, Spain 4.67% , Germany 4.49% , Japan 4.43% , Denmark 4.07% , Switzerland .93% , Norway 3.38%
The top holdings of Cleantech Index (CTIUS) as per the weightage are as follows:
SIE.DE Siemens Germany 2.14% , ABB2.SW ABB Switzerland 2.14% , GLW Corning USA 2.14% , SU.PA Schneider Electric France 2.14% , IBR.MC Iberdrola Renovables Spain 2.14% , VWS.CO Vestas Wind Systems Denmark 2.14% , FSLR First Solar USA 2.14% , WFR MEMC Electronic Materials USA 1.92% , GAM.MC Gamesa Spain 1.92% , REC.OL Renewable Energy Norway 1.92% , suzlon.ns Suzlon Energy India 1.81% , SPW SPX Corp. USA 1.81% , SPWR Sun Power USA 1.81% , STP Suntech Power Holdings PRC 1.81% , ROP Roper Industries USA 1.81% , NZYM.CO Novozymes -B- Denmark 1.81% , PLL Pall Corp. USA 1.81% , 6370:JP Kurita Water Industries Japan 1.81% . Remaining holdings less than 1.7%
What are the different cleantech sectors available for investments?
Cleantech Index CTIUS companies fall into 11 cleantech sectors:
* Clean Energy Generation
* Clean Fuels
* Energy Storage
* Grid-level Energy Controls and Efficiency
* On-site Energy Controls and Efficiency
* Water & Wastewater Treatment
* Environmental Quality (air, water, land, etc.)
* Advanced Materials
* Clean/efficient Industrial Processes & Systems
* Eco-friendly Agriculture/Nutrition
What are the risks factors of investments in Invesco PowerShares Cleantech Portfolio PZD ETF?
There is a risk of sector underperformance - if CleanTech sector does not perform well, then the returns on this Invesco PowerShares Cleantech Portfolio PZD ETF will be in loss. Another risk is due to foreign exchange or forex risk. Since this ETF is global in nature, there will be significant exposure to forex risk.
This fund also has exposure to emerging market, which may turn out to be risky. Also, the returns may be affected due to security specific local tax laws, accounting methods, geo-political problems, etc.
What are the benefits of investing in Invesco PowerShares Cleantech Portfolio PZD ETF?
Being an ETF, you can trade on Invesco PowerShares Cleantech Portfolio PZD ETF on an intra day basis. You can short sell the ETF shares, trade on margin if your broker allows you to do that. For long term investors who have faith in the returns of Clean Tech investments, this ETF should be an ideal investment.
Any other details available about Invesco PowerShares Cleantech Portfolio PZD ETF?
Fund Ticker PZD ,CUSIP 73935X278 , ISIN US73935X2788, Intraday NAV PZD.IV , Index Ticker CTIUS , Marginable Yes , Short Selling Yes , Options Yes , Exchange AMEX , Inception Date 10/24/2006
Expense ratio of Invesco PowerShares Cleantech Portfolio PZD ETF is capped at 0.6% making it a low cost ETF, Price to earnings stnad at around 18.6 as of June 30, 2008, Price to boo Ratio is 4.4.
| All in all, a good and unique product from Invesco powershares, for Investors who are looking to specifically invest in Clean Technology or CleanTech sector investments. |