What are alternative energy ETFs?

Definition: Alternative energy ETFs are funds that invest in alternative energy companies. The most popular and most common industry in this category is solar energy, although wind, hydroelectric, and geothermal energies are also represented here.

Which ETFs hold energy stocks?

Due to its market-cap-weighted construction, 22.8% and 15.1% of VDE are held in Exxon Mobil Corp. ( XOM) and Chevron Corp. ( CVX ), respectively. ETFs holding energy stocks have exposure to commodity prices but are ultimately still equities.

What is alternative energy?

Alternative Energy is any energy source that is an alternative to fossil fuels. These alternatives are intended to address concerns about fossil fuels, such as their high carbon dioxide emissions. Examples of alternative energy include solar, wind, geothermal and hydro energy.

Should you invest in a commodity ETF?

ETFs holding energy stocks have exposure to commodity prices but are ultimately still equities. For those looking for an energy play with lower correlation to equity markets, commodity ETFs like USO could be a solution. This ETF holds a portfolio of West Texas Intermediate (WTI) crude oil futures contracts and charges a heftier 0.81% expense ratio.