Alternative Energy Indexes
Alternative energy indexes track the performance of companies involved in the production, distribution, and development of renewable energy sources, such as solar, wind, hydroelectric, and geothermal power. These indexes provide investors with a way to gauge the overall performance of the alternative energy sector and to invest in a diversified portfolio of companies leading the transition to cleaner energy sources. Investors use alternative energy indexes as benchmarks for investing in green energy or to gain exposure to companies that are expected to benefit from the global shift toward sustainable energy practices.
Example
The WilderHill Clean Energy Index is an example of an alternative energy index that tracks companies involved in the clean energy sector, such as those producing wind turbines or solar panels.
Key points
• Tracks the performance of companies in the renewable energy sector.
• Includes companies involved in solar, wind, hydroelectric, and other clean energy sources.
• Used as benchmarks or investment tools for green energy exposure.