By Carl Delfeld of the Chartwell ETF Advisor
Investing in clean energy and environmental sectors through exchange-traded funds is all the rage due to high oil prices and the attention paid to global warming.
While the media and policy establishment are preoccupied with global warming issues that may or may not have important consequences in 50 years, an environmental mess exists in China right now.
Here is just a sampling of facts drawn from a recent article by Elizabeth Economy in Foreign Affairs to get your attention.
• China is the world leader in air and water pollution.
• Sixteen of the most polluted cities in the world are in China.
• According to World Wildlife Fund, China is the largest polluter of the Pacific Ocean.
• 2/3 of China’s largest 660 cities face a water shortage right now.
• The EPA estimates that 25% of the particulates hovering over LA originate in China.
• In converting coal into energy, America is six times more efficient than China.
• About 190 million people in China are sick from contaminated water.
• Netherlands’ Environmental Agency states that China is the world’s largest contributor of CO2.
• In China about 750,000 infants a year face premature death due to respiratory disease.
• Chinese experts believe that only about 10% of China’s environmental laws are enforced.
Tom Lydon of ETF Trends put together an excellent summary of green ETFs and how they are doing so far this year.
PowerShares WilderHill Clean Energy Portfolio (PBW) - up 33.4%
PowerShares Cleantech (PZD) - up 30.4%
Market Vectors Environmental Services ETF (EVX) - up 23.2%
Claymore/LGA Green ETF (GRN) - up 7.4%
PowerShares WilderHill Progressive Energy (PUW) - up 16.2%
Market Vectors Global Alternative Energy ETF (GEX) - up 11.5% for the last three months, having launched in May
PowerShares Global Clean Energy (PBD) - up 11.1% for the last three months, having launched in June
First Trust NASDAQ Clean Edge U.S. Liquid ETF (QCLN) - up 6.6% for the last three months, having launched in February
Market Vectors Nuclear Energy ETF (NLR) - up 5.4% for the month, having launched in August
The Chartwell New Venture ETF portfolio has a couple of these green ETFs and may add more.