Invesco’s PowerShares Cleantech Portfolio (PZD) outperformed 35 other low-carbon energy funds in 2010, according to Bloomberg.
The exchange-traded fund (ETF), with $152 million in assets, posted a return of 7.6% in 2010.
The fund outperformed Winslow Green Growth Fund’s 7.4% gain and a 4.5% return for DnB Nor ASA’s Miljoinvest fund.
Rafael Coven, who manages the index, said the fund also finished 10%-30% ahead of other green index-based funds and actively managed mutual funds such as Powershares Global Clean Energy (PBD), New Alternatives (NALFX), and Guinness Atkinson Funds (GAAEX).
The fund tracks the green stocks in the Cleantech Index produced by San Francisco-based Cleantech Group LLC.
The largest holdings in its 71 stocks are Siemens AG (SIE), ABB Ltd. (ABBN) and Schneider Electric SA. (SU).
Coven says he’s currently avoiding much exposure to wind companies, which "has become a complete commodity," and solar cell makers, because "the Chinese will continue to flood the market and destroy pricing."
Instead, his top picks include solar equipment suppliers like Centrotherm Photovoltaics AG (CTN), and GT Solar (SOLR), which make equipment to manufacture solar cells.
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