The Roen Financial Report issued its monthly ranking of alternative energy Mutual Funds (MFs) and Exchange Traded Funds (ETFs). The latest update caused changes at the top of ranks for both MFs and ETFs.
Both Guinness Atkinson Alternative Energy (GAAEX) and Alger Green A (SPEGX) dropped one rank this month.
GAAEX measures well in the fundamentals of its underlying securities, such as price/sales and price/earnings, but comes up short on overall expense ratio and return metrics. On the contrary, SPEGX has a good expense ratio relative to the other funds, but holds alternative energy companies that are less robust on their fundamentals. Having said that, SPEGX gained an impressive 25% in the last 12 months, whereas GAAEX has dropped 21% in value.
DWS Clean Technology (WRMSX) was liquidated in September, so will no longer be ranked.
This month two ETFs, First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (GRID) and PowerShares WilderHill Progressive Energy Portfolio (PUW) dropped out of their top ranked slots.
GRID ranks low in both forward and trailing price/earnings ratios, and has high potential capital gains exposure, so drops down to a Rank 4. PUW just drops one notch to a Rank 2, as it retains strong ratings for having low management fees and low risk. Both funds posted strong annual returns, so if you own GRID this may be a good time to take some profits.
Remember to always consult with your investment professional before making important financial decisions.