Smart Grid ETF (GRID) Begins Trading
The government is pouring billions into the technology. Cisco CEO John Chambers said it will be bigger than the internet. The opportunity for investors is indeed BIG and now there’s a diversified way to play “it” – the smart grid revolution.
There are quite a few useless and overlapping ETF’s out there and this industry is in need of a major shakeout, but every once in awhile a great ETF comes along and the First Trust/Clean Edge Smart Grid ETF (GRID) is no exception. The ETF aims to track the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index and is a modified market cap weighted index which includes companies that are primarily engaged in all components of the smart grid – from the meters, to the network, to energy storage to software.
The fund aims to focus primarily on smart grid plays by weighting those companies deemed as smart grid “pure plays” much more (80%) than big companies with a fraction of their business in the smart grid arena (weighted at 20%). For example, a company like Itron (ITRI) is going to comprise a much larger portion of the ETF than a GE would.
The ETF is comprised of 29 companies, but here are the top 10 holdings. Companies must have a minimum float adjusted market capitalization of $100 million and a 3 month avg daily dollar trading volume of $500K.
Other smart grid plays included are AEIS, COMV, DGII, ESE, BGC, GE, ITLN, ITC, MTZ, PIKE, SATC, VMI, WCC, ABB, CBE, JST, TLVT, SI, NGG
After just two days of trading, the Smart Grid ETF (GRID) offers plenty of liquidity, trading 200K shares today. I’d imagine liquidity will continue to improve rapidly in the coming months for you short term traders out there.
In just a few weeks on December 7th, a secret meeting of world leaders takes place that will undoubtedly go a long way in shaping how we live our lives. .. from the kinds of cars we drive, to how many hours we can run hot water, to how much we pay in electricity bills each month. The COP15 Climate Change conference in Denmark will provide extraordinary profit opportunities in what venture capitalist firm Kleiner Perkins Caufield and Byers said “could be the largest economic opportunity of the 21st century.” What is that opportunity? Cleantech. Everything from renewable energies, to energy efficiency, to water treatment and conservation. The opportunity in the coming years will be extraordinary and for those that position themselves, will reap the rewards.
Following the last meeting, international alternative energy companies such as Vestas Wind, Sunways and Climate Exchange PLC all skyrocketed and the profits could be bigger this time around. The big guys know this and are already positioning themselves. According to Green Chip Stocks International, Morgan Stanley, Citi and JP Morgan were given the inside scoop on COP15’s agenda last year and almost immediately mapped out their entire lending strategy for the next 40 years to be in synch with the $45 trillion global trend COP15 is responsible for. Some companies will be left in the dust while others will lead the way into the future.