Not very long ago clean and/or alternative energy ETFS were really hot. The Global Clean Energy ETF (ICLN) was trading about $19 in April 2011. In a short span of about 7 months this ETF has tumbled sharply and as of Friday last week ICLN had fallen to $9. A slump of over 70%. Solar Energy ETFS are being scorched even more.

What has happened to the alternative energy concept? Is alternative energy no longer viable? Doubts will undoubtedly creep in the minds of retail investors at this point especially in the Solar space with supposedly promising startups declaring bankruptcy abruptly.

While the market forces are mercilessly pounding these ETFS, some least risk averse contrarian investors may be bargain hunting some of these ETFS especially the widely diversified ones in this space.

It is an undeniable fact that Crude Oil has a finite source of supply and at some point acute scarcity of this resource will become a reality. Faced with that kind of reality, we believe the scientific community will always be exploring alternative energy sources and ideas.

The biggest headwind alternative energy faces now is the lack of cost effective innovations that can bring the cost of using these energy sources lower. For instance, we still don't have a viable alternative energy device that can singularly power a car without other energy sources. But at the same time hybrid vehicles are becoming more and more popular with consumers.

Considering the ever present need for finding alternative sources of fuel and energy, we continue to have faith in alternative energy ETFS. But becoming too granular in this space can carry plenty more risk as at this time various alternative energy models are in play but none with a clear dominance or superiority over others.

A well diversified alternative energy ETF can be looked at as a long term value play for patient investors who are willing to stay the course.