One of the best places to invest is through the Vanguard Solar Energy Fund. The fund’s PV (photovoltaic) modules have seen an 82% increase in price and a 69% decrease in efficiency, leading to a 96% drop in selling price per watt from its peak in 2009. At press time, the fund was yielding 4.8%. That’s right, over the past five years, the fund’s dividends have more than offset the lower-than-average fund fees. One of the best things about this fund is its tax-free nature, which is a great fit for those in the 28% tax bracket or higher.
Consider these facts: the cost of solar power has fallen 82% in the past five years, and four out of the five largest publicly traded solar companies are indicative stocks in the Vanguard Solar Energy Funds.
The downside is that there’s some uncertainty with this type of investment and the value of PV modules, as shown by the slight deviation from the index’s overall performance. In addition, PV module warranties have also suffered as a correlation. At the same time, the environment remains uncertain, as PV modules don’t degrade over time and they need to be replaced once their efficiency declines to a point where the return on investment is not justified.
However, if you’re a long-term holder of Vanguard Stocks or Vanguard Solar Energy
funds, this is still a safe and sound way to invest in the green energy field.
The Vincent Klemperer Vanguard Solar Energy Fund is an international fund that manages a multi-currency portfolio of over 100 Vanguard Stocks, allowing for investment in the solar power sector, environmental friendly technology, and green economics. Most people consider Vanguard to be a premier investment company, and for good reason.
The fund is headquartered in North America, but it is an international affiliate, meaning that it offers investments in countries across the globe. Its primary market is the U.S., followed by Canada and Mexico, while the largest proportion of its assets is invested in the U.S. stock market. If you’re looking to invest somewhere in the solar sector, Vanguard Stocks or the Vanguard Solar Energy Fund is a solid choice, as the cost of solar power has decreased 82% and the value of PV modules has risen only 26% over the last five years.
One of the best things about the Vanguard Solar Energy Fund is its tax-free nature. Remember, the fund is a ETF, or Exchange Traded Fund, which means that it’s traded like a stock and you don’t have to pay capital gains taxes on any stock gain, whether it’s a win or a loss. You will, however, have to pay taxes on any fund distribution, though.
Also, unlike other funds that shy away from this sector, the Vanguard Solar Energy Fund directly invests in PV (photovoltaic) modules and other environmental friendly technology, allowing for solar’s continued growth as an alternative to fossil fuels.
How To Invest In The Vanguard Solar Energy Fund?
To invest in the Vanguard Solar Energy Fund, you’ll first need to establish an individual account, if you don’t have one already. Second, you’ll have to select one of the three ways to invest, as the fund does not provide individual investment advice. To make a contribution to the fund, you’ll first need to identify the share of the Vanguard Solar Energy Fund that you want to invest in, then select one of the three investment platforms that the firm uses: index funds, S&P 500 sector funds, or one of its other market specific indexes. Remember, the fund is open to all investors, but it is a bit more suitable for long-term investment and speculators.
Once you make your contribution, the Vanguard Solar Energy Fund will match your investment, on average, plus additional solar specific farms, isolated power stations, and other environmental friendly technologies, with a return of your invested amount plus a profit if the stock you select appreciates in value. For example, if you contribute $100, you’ll receive $120 back (plus a small profit), as well as shares of the Vanguard Solar Energy Fund. The fund’s current average return is 1.2%.
Considering this is a safe and secure way to invest, with a long-term, dividend paying stock, you can’t go wrong.