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The cash-settled proprietary ISE Alternative Energy Index (POW) includes companies involved in the development of technology relating to alternative energy sources such as: geothermal heat, hydrogen/fuel cell, hydropower, nuclear fusion, solar energy, and wind energy.
The U.S. is estimated to hold less than three percent of proven global oil reserves, while OPEC-producing countries control 40 percent of production. With high oil prices, declining global supply, and a strong global economy, alternative energy alternatives gain importance. With 18 companies represented as of Oct. 1, 2007 (but can contain as many as 25 component stocks), the ISE Alternative Energy Index is constructed to specifically isolate alternative energy companies that serve as a proxy for this market segment.
Suntech Power Holdings (STP UN), Altair Nanotechnologies (ALTI), Edison International (EIX) and Sunpower Corp. (SPWR) are some of the stocks represented in the Index.
The ISE-CCM Alternative Energy Index is calculated on a price and total return basis.
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