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Environmental Investing

One of the trendiest investment topics nowadays is environmental investing. Our forte in this arena is our Springwood allocation consisting of companies with significant exposure in the renewable energy sector.

It's interesting to note with renewable energy being a trendy topic that all sorts of claims are being made to attract investors’ attention. Nothing sells like a trendy topic, so it's interesting to note when I did my standard due diligence on possible new entries into the universe of green energy companies to include in the Springwood allocation, I have found a lot of ideas that were not true to the label.  I looked at a number of green energy ETFs and looked at what they contain.  And what did I find?  Treasury bonds.  Small cap and MLP Master Limited Partnerships, which is a common ownership structure for pipelines.

How is a Master Limited Partnership that controls pipelines a green asset?  I guess the rationale would be like, well, it transports natural gas, and natural gas is cleaner than other carbon-emitting fossil fuels.  That is cause for inclusion into our green energy ETF!  

I don't know how you feel about that as an investor.  It's important to check out exactly what your supposedly green energy investment holds.  Is it actually a company that is truly devoted to renewables and to the elimination of carbon emissions, or is it naturally a company that does emit carbon?  And you, as the passionate green energy investor, you have the power to put your money where your beliefs are, and you have the power to put your values and your beliefs into play.  Be careful what you invest in.  Make sure you understand what you are investing in, and be sure to check out our Springwood allocation, the cleanest managed portfolio I know of for renewable energy.