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4 Alternative Energy Fund Picks for World Wind Day
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Wind Day was organized by WindEurope and the Global Wind Energy Council (GWEC) for the first time in 2007 to throw more light on wind energy and its benefits to the population through a series of activities. However, it was only in 2009 that the event became a global phenomenon and got renamed as World Wind Day. In fact, every year this day, various activities are organized to make people aware of wind energy’s importance in reshaping energy systems and decarbonizing economies.
Wind power is one of the greatest alternatives to fossil fuels as it is clean, renewable, widely distributed, produces no emissions during operation and uses little land. Also, it is one of the most antient ways to harness energy. It was used to propel ships and later became useful in making electrical power. In recent years, in an attempt to prevent rapid climate change and reduce carbon emissions, countries have embraced renewable forms of energy such as wind and solar. In fact, per the International Renewable Energy Agency (IREA), wind and solar power accounted for 82% of the new power installations in 2020.
Several giants in the energy business like Dominion Energy has begun issuing green bonds and is planning to spend more than $26 billion to harness clean energy and adopt wind and solar systems over the next five years. In fact, the company is spending a hefty part of this amount in building offshore wind facilities. Its major project off the coast of Virginia Beach is expected to be completed by 2026 and will be the largest offshore wind farm in America with about 180 turbines, which will be enough to power 660,000 homes.
The U.S. government has been immensely supportive of the transition to clean energy. The Department of Energy (DOE) and the White House have made clear that offshore wind projects would strengthen the country’s energy infrastructure, in fact calling it a centerpiece in its plan to become a net-zero emission country by 2030. It has a goal to deploy 30 gigawatts of offshore wind by 2030 that will light up 10 million American households and cut carbon dioxide emissions by 78 million metric tons, and the cherry on the top, add 77,000 new jobs.
4 Fund Picks
This World Wind Day, let’s pick up these four alternative energy funds that can impact the environment positively and also haul in splendid returns. What’s more? These funds sport a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
New Alternatives Fund Class A (NALFX - Free Report) aims for long-term capital appreciation, with income being the secondary objective. The fund invests in common stocks of YieldCos, American Depository Receipts, real estate investment trusts and publicly-traded master limited partnerships.
This Zacks Sector – Other product has a history of positive total returns for more than 10 years. Specifically, NALFX has three and five-year returns of 29.4% and 20.8%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
NALFX has an annual expense ratio of 0.96% versus the category average of 1.26%. Additionally, the fund has significant investment in alternative energy companies like Innergex Renewable Energy, Vestas Wind Systems and Nextera Energy.
Calvert Global Energy Solutions Fund Class A (CGAEX - Free Report) aims to track the performance of the Calvert Global Energy Research Index. The fund invests majority of assets in companies whose main business is sustainable energy solutions. The portfolio consists of companies engaged in facilitating the transition to a more sustainable economy through the reduction of greenhouse gas emissions and the expanded use of renewable energy sources.
This Zacks Sector – Other product has a history of positive total returns for more than 10 years. Specifically, CGAEX has three and five-year returns of 22.1% and 17%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
CGAEX has an annual expense ratio of 1.24%, which is below the category average of 1.26%. Additionally, this fund has significant investment in alternative energy companies like First Solar, Nextera Energy Partners and Terraform Power.
Fidelity Select Utilities Portfolio (FSUTX - Free Report) aims for capital appreciation. This non-diversified fund invests majority of assets in common stocks of companies primarily engaged in the utilities industry and companies generating most of their revenues from utility operations.
This Zacks Sector – Utilities has a history of positive total returns for more than 10 years. Specifically, FSUTX has returned 9.6% and 10.3%, in the past three and five-year period, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSUTX has an annual expense ratio of 0.76%, which is below the category average of 0.95%. Additionally, this fund has significant investment in alternative energy companies like Clearway Energy, Vistra Corp, Nextera Energy and Sunnova Energy.
Franklin Utilities Fund Class A1 (FKUTX - Free Report) aims to provide capital appreciation and current income. The fund invests majority of assets in equity securities of utilities companies that provide electricity, natural gas, water and communications services to the public and companies.
This Zacks Sector – Utilities has a history of positive total returns for more than 10 years. Specifically, FKUTX has returned 11.5% and 8.9% in the past three and five-year period, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FKUTX has an annual expense ratio of 0.73%, which is below the category average of 0.95%. Additionally, this fund has significant investment in alternative energy companies like Sempra Energy, Nextera Energy and Xcel Energy.
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4 Alternative Energy Fund Picks for World Wind Day
Wind Day was organized by WindEurope and the Global Wind Energy Council (GWEC) for the first time in 2007 to throw more light on wind energy and its benefits to the population through a series of activities. However, it was only in 2009 that the event became a global phenomenon and got renamed as World Wind Day. In fact, every year this day, various activities are organized to make people aware of wind energy’s importance in reshaping energy systems and decarbonizing economies.
Wind power is one of the greatest alternatives to fossil fuels as it is clean, renewable, widely distributed, produces no emissions during operation and uses little land. Also, it is one of the most antient ways to harness energy. It was used to propel ships and later became useful in making electrical power. In recent years, in an attempt to prevent rapid climate change and reduce carbon emissions, countries have embraced renewable forms of energy such as wind and solar. In fact, per the International Renewable Energy Agency (IREA), wind and solar power accounted for 82% of the new power installations in 2020.
Several giants in the energy business like Dominion Energy has begun issuing green bonds and is planning to spend more than $26 billion to harness clean energy and adopt wind and solar systems over the next five years. In fact, the company is spending a hefty part of this amount in building offshore wind facilities. Its major project off the coast of Virginia Beach is expected to be completed by 2026 and will be the largest offshore wind farm in America with about 180 turbines, which will be enough to power 660,000 homes.
The U.S. government has been immensely supportive of the transition to clean energy. The Department of Energy (DOE) and the White House have made clear that offshore wind projects would strengthen the country’s energy infrastructure, in fact calling it a centerpiece in its plan to become a net-zero emission country by 2030. It has a goal to deploy 30 gigawatts of offshore wind by 2030 that will light up 10 million American households and cut carbon dioxide emissions by 78 million metric tons, and the cherry on the top, add 77,000 new jobs.
4 Fund Picks
This World Wind Day, let’s pick up these four alternative energy funds that can impact the environment positively and also haul in splendid returns. What’s more? These funds sport a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
New Alternatives Fund Class A (NALFX - Free Report) aims for long-term capital appreciation, with income being the secondary objective. The fund invests in common stocks of YieldCos, American Depository Receipts, real estate investment trusts and publicly-traded master limited partnerships.
This Zacks Sector – Other product has a history of positive total returns for more than 10 years. Specifically, NALFX has three and five-year returns of 29.4% and 20.8%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
NALFX has an annual expense ratio of 0.96% versus the category average of 1.26%. Additionally, the fund has significant investment in alternative energy companies like Innergex Renewable Energy, Vestas Wind Systems and Nextera Energy.
Calvert Global Energy Solutions Fund Class A (CGAEX - Free Report) aims to track the performance of the Calvert Global Energy Research Index. The fund invests majority of assets in companies whose main business is sustainable energy solutions. The portfolio consists of companies engaged in facilitating the transition to a more sustainable economy through the reduction of greenhouse gas emissions and the expanded use of renewable energy sources.
This Zacks Sector – Other product has a history of positive total returns for more than 10 years. Specifically, CGAEX has three and five-year returns of 22.1% and 17%, respectively. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
CGAEX has an annual expense ratio of 1.24%, which is below the category average of 1.26%. Additionally, this fund has significant investment in alternative energy companies like First Solar, Nextera Energy Partners and Terraform Power.
Fidelity Select Utilities Portfolio (FSUTX - Free Report) aims for capital appreciation. This non-diversified fund invests majority of assets in common stocks of companies primarily engaged in the utilities industry and companies generating most of their revenues from utility operations.
This Zacks Sector – Utilities has a history of positive total returns for more than 10 years. Specifically, FSUTX has returned 9.6% and 10.3%, in the past three and five-year period, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FSUTX has an annual expense ratio of 0.76%, which is below the category average of 0.95%. Additionally, this fund has significant investment in alternative energy companies like Clearway Energy, Vistra Corp, Nextera Energy and Sunnova Energy.
Franklin Utilities Fund Class A1 (FKUTX - Free Report) aims to provide capital appreciation and current income. The fund invests majority of assets in equity securities of utilities companies that provide electricity, natural gas, water and communications services to the public and companies.
This Zacks Sector – Utilities has a history of positive total returns for more than 10 years. Specifically, FKUTX has returned 11.5% and 8.9% in the past three and five-year period, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FKUTX has an annual expense ratio of 0.73%, which is below the category average of 0.95%. Additionally, this fund has significant investment in alternative energy companies like Sempra Energy, Nextera Energy and Xcel Energy.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>