This is not a personal add seeking a single white female (SWF). It is the other SWF the less commonly know Sovereign Wealth Fund (SWF). A sovereign wealth fund is a state-owned investment fund composed of financial assets. SWF’s are some, if not, the largest investment funds in the world. SWF’s typically come about as a result of governments having budgetary surpluses. Here in the US we have forgotten about government budget surpluses.
To the point
So why the picture of the Norwegian flag? Well Norway is the home of the world’s 2nd largest SWF. James Lamont of the Financial Times recently reported in an article titled Norway Wealth Fund in $4bn green push that The Norwegian Government Pension Fund has directed 1% ($4bn) of assets to “green shares.”
Not just any “green shares”
According to Lamont, the target of the investments will be emerging nations such as India where $1.2bn has been deployed to 232 Indian companies related to clean energy and environmental sustainability. There is an important jewel of information in the article. Consider that $4bn in new investment will be going to the emerging markets in “green shares.” The Norwegian authorities have also pointed to the fact that they will be putting a “greater share” of assets in developing nations.
What does it mean to you?
If you are inclined to consider “green investing,” consider a global fund. Additionally, the article indicates that Norway is very focused on India for future investment. You can play both global green and India through ETFs.
Wisdom Tree India ETF (ticker EPI) is well above its 50 and 200 day EMA and is up over 75% YTD
Powershares CleanTech ETF (ticker PZD) is well above its 50 and 200 day EMA ans is up over 29% YTD. According to PowerShares, company is considered to be part of the cleantech industry if it “produces any knowledge- based product or service that improves operation, performance, productivity or efficiency, while reducing costs, inputs, energy consumption, waste or pollution.”
Charts courtesy of StockCharts.com
Full Disclosure Statement: ETFGPS is a blog that Navigates The World of ETFs. Sustainable Investment Strategies LLC is a Registered Investment Adviser in the State of Maryland, and does not hold positions in the above ETFs at the time of writing. Investors who are interested in money management services may visit the Sustainable Investment Strategies LLC web site.
