Alternative energy, which includes renewables and natural gas, is set to become the fastest growing source of energy over the next 30 years. With commitments by various governments across the globe to reduce greenhouse gas emissions, cleaner sources of….
ETF Securities Research
energy will increasingly take share from traditional fossil fuels. Many governments are severely behind schedule to meet their targets and with the worst of the sovereign debt crisis likely behind us, they will need to intensify efforts to get back on track, providing a tailwind for companies operating the alternative energy sector. On our estimates, the weighted average price-to-earnings ratio of the constituents of the DAXglobal Alternative Energy index is now more than 30% below its five-year historic average, indicating the sector is now at an attractive entry level for long-term investors.