I recently received an e-mail question from Don that asked, Have you come across any mutual funds that invest in alt. energy stocks? Here was my response, Don, I haven’t found any specific mutual funds that are entirely in this sector. I know that the Pax funds have a few holdings of Alt E stocks. This sector has been hot recently, so I know many of the stocks that I follow are in many mutual fund portfolios. Most mutual fund managers are momentum players and when they see stocks moving quickly in any specific quarter, they try to close the quarterly books with some of these names in the portfolio. You should really look at the PowerShares Exchange Traded Fund (ETF). An ETF works just like a mutual fund, but trades like a stock. The Power Shares Clean Energy ETF (Ticker Symbol PBW) is one of the only fund like investment tools I have found that follows this sector. More information can be found here: http://www.powershares.com/. This ETF can be purchased from any brokerage account. I’m including this Q&A here for all to share. If you have any additional information, please feel free to leave a comment below.