Potential in GRID ETF

Last week, there was a post on Long & Short Investment called Investing in Smart Grid and discussed potential in Smart Grid investment.  I would like to share today about an ETF in Smart Grid and whether it would be smart to invest in this ETF. 

A Grid Infrastructure Exchange Traded Fund ETF (GRID) was first launched on November 17, 2009.  Although this ETF is labeled as “Smart Grid”, it covers the whole grid infrastructure sector, which is positive for “green” investors.  Some of the sectors included in GRID are as follows:
  • Infrastructure
  • Smart Grid
  • Energy Efficiency
  • Solar
  • Wind
  • Electric Storage

Despite the diversification in GRID in non-Smart Grid sectors, I really like this ETF as part of a green energy portfolio.  GRID's broader focus in several energy sectors should bring much steadier and surer long term returns compared to single sector focus.  The Fund's expense ratio is currently capped at 0.70%.
In looking a 4 month chart of GRID, it has been trading in somewhat a narrow range since inception.  There has been a good run after making its low around $28.  There is a upward trend support and as long as it does not cross, GRID should continue to move higher.  There is a potential to test its low if GRID breaks this support.  However, GRID looks to be solid as a long-term investment spanning  5-10 years.

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