Recently, Morningstar analyst Bill Rocco shared with me one of his favorite environmentally oriented "green" funds, Winslow Green Growth (symbol WGGFX). Managed by Jack Robinson and Matt Patsky, the $395 million fund is a "good but extremely aggressive" choice for green investors. It focuses on small, fast-growing companies that have either a positive or neutral impact on the environment. Top holdings include First Solar, Green Mountain Coffee Roasters, and fitness club operator Life Time Fitness. The fund, which has gained a respectable 9 percent annualized over the past five years, has dropped 28 percent so far in 2008. "When things are looking up, this fund looks great, but it can also lose a lot of money at times," says Rocco. "Investing in it would be like adding a bit of spice." He added that in general, small-company growth funds should make up a small slice of your overall portfolio.
On another note, if you want to evaluate green funds based on their screens, check out SocialFunds.com's "SRI Fund Finder" tool.