10 Energy ETFs That Will Clear Your Conscience

Investing with a green thumb.

Solar and wind companies might be the future, but they're often risky investments, with many stocks in the space suffering large annual losses and volatile price movement. But that's not the only way to invest "clean." In addition to these game-changers, there are a number of more stable industrial and utility stocks working toward more energy-efficient technologies. Exchange-traded funds can help bridge the gap. Whether you want to invest solely in solar or wind, or get broader, more stable clean-tech exposure, you have a number of interesting options on the ETF market.

Guggenheim Solar ETF (ticker: TAN)

The TAN ETF is one of the oldest and most popular clean-energy funds on the market. This fund invests specifically in solar industry stocks, from photovoltaic cell manufacturers like First Solar (FSLR) to solar system installers like SolarCity Corp. (SCTY). The former makes up 7.3 percent of the fund, but with only 25 holdings in the fund, that's not drastically overweight. TAN is also pretty global in nature, with the U.S. at 38 percent of the fund, but China at 37 percent and seven other countries making up the rest.

Expenses: 0.7 percent, or $700 for every $10,000 invested annually. Includes 10-basis-point fee waiver.

VanEck Vectors Solar Energy ETF (KWT)

KWT, which came out about a week after TAN's debut in April 2008, looks a great deal like Guggenheim's ETF from top to bottom, but it does have a couple of noticeable differences. For one, despite having six more holdings, top holdings such as First Solar and Xinyi Solar Holdings are weighted more heavily (8.2 percent and 7.9 percent, respectively) than they are in Guggenheim's ETF. And while KWT has slightly underperformed TAN since inception, it is the cheaper of the two funds by 5 basis points.

Expenses: 0.65 percent. Includes 43-basis-point waiver.

First Trust ISE Global Wind Energy Index Fund (FAN)

Wind hasn't been as popular an alternative energy solution as solar, and that seems to be reflected in TAN's $220 million in assets under management compared to $65 million for FAN -- the lone wind energy ETF on the market. FAN does feature some 45 holdings, but the fund stretches far beyond direct plays to include large companies that dabble in wind energy, whether it's via producers like Royal Dutch Shell (RDS.A) or industrials like General Electric Co. (GE) that produce wind turbines. So FAN is a wind play, but not a completely pure one.

Expenses: 0.6 percent. Includes 15-basis-point fee waiver.

PowerShares WilderHill Clean Energy Portfolio ETF (PBW)

PowerShares is a U.S.-heavy fund of companies that are "engaged in the business of advancement of cleaner energy and conservation." The holdings list for PBW is thoughtful, including obvious holdings such as SolarCity and China Ming Yang Wind Power Group (MY), but also Universal Display Corp. (OLED), which develops energy-efficient organic light-emitting diode technologies, and Hexcel Corp. (HXL), which not only produces materials for wind turbine blades, but also automotive composites that reduce weight -- thus reducing fuel consumption.

Expenses: 0.7 percent. Includes 2-basis-point fee waiver.

PowerShares WilderHill Progressive Energy Portfolio ETF (PUW)

The PUW is a much more diversified energy ETF that is focused on everything from alternative energy to fuel efficiency to efficiency-aiding materials. The result is an exceedingly balanced fund covering 17 industries across nearly 100 stocks. The largest weighting currently goes to oil and natural gas firm Southwestern Energy Co. (SWN) -- which minimizes its emission profiles via "green completion" technology -- at just 4.51 percent of the fund.

Expenses: 0.7 percent. Includes 16-basis-point fee waiver.

PowerShares Cleantech Portfolio ETF (PZD)

PowerShares' laundry list of clean-energy ETFs continues via the PZD, which follows a modified equally weighted index of clean tech companies. PZD is very heavy in industrials -- including top 10 holdings like water-tech firm Xylem (XYL) and filtration system manufacturer Donaldson Co. (DCI) -- which make up more than half the fund. Top holding Johnson Controls (JCI), technically a consumer play, puts out lithium-ion batteries for hybrids, as well as systems that make buildings more energy-efficient.

Expenses: 0.67 percent. Includes 5-basis-point fee waiver.

VanEck Vectors Global Alternative Energy ETF (GEX)

VanEck's GEX is one of a number of global alt- or clean-energy ETFs on the market, though it's also decidedly not very global. While the portfolio does represent 12 countries, a simple majority (51 percent) of the fund's weight belongs to American stocks. It's also very focused in a trio of holdings -- power management company Eaton Corp. (ETN), Vestas Wind Systems and Tesla Motors (TSLA) -- that each make up about 10 percent of the fund. That's a hefty load considering GEX holds 30 stocks.

Expenses: 0.62 percent

iShares Global Clean Energy ETF (ICLN)

The ICLN, for only investing in 31 stocks, still is about as well-rounded as global green-energy funds get. Country weightings of 30 percent in Chinese stocks and 25 percent in U.S. stocks are pretty typical, but eight other countries get 4 to 7 percent weights. ICLN's top holdings -- including Austrian utility Verbund and Spanish industrial Gamesa -- are weighted in a tight range between 4.66 and 5.66 percent each. And you even get a decent yield of 2.7 percent out of this ETF.

Expenses: 0.47 percent

PowerShares Global Clean Energy Portfolio ETF (PBD)

The PBD is the broadest-based of the global energy funds, with 97 stocks under its belt. Again, the U.S. (27 percent) and China (18 percent) are the 1-2 punch, but Spain makes up 7.5 percent of the fund, and Germany and Canada each clock in at 5 percent. And if you feel more comfortable knowing no single stock is going to make or break a fund, the PBD is perfect, as top holding OLED makes up just 2.75 percent of the fund. Other top holdings include JCI and Acuity Brands (AYI).

Expenses: 0.77 percent

Global X YieldCo Index ETF (YLCO)

Yieldcos are a relatively new asset class that holds cash-flow-producing assets, and while they're technically not necessarily restricted to clean-energy purposes, most yieldcos on the market have been formed by solar and other renewable energy companies. YLCO is the only yieldco ETF on the market, and invests in a mere 20 stocks, including Brookfield Renewable Partners (BEP), which holds hydroelectric and wind assets across three continents. The ETF is top-heavy, with the top five holdings making up 45 percent of the fund, but it's also yield-heavy, at a whopping 5.9 percent.

Expenses: 0.65 percent

Kyle Woodley is managing editor of InvestorPlace.com. Investing is his second love, with Ohio sports teams as his first. Naturally, this has warped his general perception of love, sparking (among other things) an unnatural affection for the Haddaway hit, "What Is Love?" Follow him on Twitter @kylewoodley.