10. Green Mutual Funds
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Like ETFs, green mutual funds struggled through the bear market, seeing big losses in 2008 and 2009. Don�t confuse green funds with socially responsible ones, which screen out companies based on moral and ethical criteria. Those tend to be heavy in blue-chip names. Green mutual funds seek out alternative energy and green lifestyle stocks specifically. Excluding funds that have loads, excessive sales charges, or short histories, there are six to consider: Allianz (AECDX), Fidelity (FSLEX), Firsthand (ALTEX), Gabelli (SRIGX), Guinness Atkinson (GAAEX), and Winslow (WGGFX). Fidelity�s Select Environmental and Alternative Energy Fund was the best performer in 2010, gaining 15%. Over the past three years it lost just 2% and it has a positive 3.45% return for its lifetime. It�s heavy in larger-cap companies, counting United Technologies (UTX), 3M (MMM), and Johnson Controls (JCI) among its top 10 holdings, which as a group are 48% of its portfolio as of the end of 2010.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.