Solar Energy ETFs Find Momentum

By
December 13, 2012
Share:

Related ETFs

Ticker Fund name
TANGuggenheim Solar
KWTMarket Vectors Solar Energy
Related ETF Lists
Global ETFs

The sun finally breaks through and starts shining a bit on solar ETFs.

Solar energy ETFs shot up this week, buoyed by a successful initial public offering of one of Silicon Valley’s largest clean-energy companies at a time when the market was already supported by reports that China plans to increase its investment in solar power.

The $49 million Guggenheim Solar ETF (NYSEArca: TAN) and the $11 million Market Vectors Solar Energy ETF (NYSEArca: KWT) were the best-performing U.S.-listed ETFs Wednesday, posting gains of 8.5 percent and 6.3 percent, respectively.

Their performance is even more impressive on a five-day stretch. TAN has tallied nearly 18 percent in gains since Dec. 7, while KWT is up 16 percent in the same period. The rally has been unaccompanied by net inflows, according to IndexUniverse’s ETF Flows Tool.

For solar energy enthusiasts, the recent run-up is a welcomed reprieve from what has been one long year of losses in solar funds, as the segment faces collapsing prices while output capacity grows.

Year-to-date, both TAN and KWT have bled roughly a third of their value, and those losses look even steeper on an annual chart. TAN has lost 40 percent in the past year, while KWT is off by 37 percent.

Still, SolarCity—one of Silicon Valley’s largest U.S. installers of residential solar system—successfully raised $92 million in its initial public offering Wednesday, after the IPO was postponed for a day.

The company, which has a market valuation of $584.6 million, has seen its revenue grow fourfold in the last five years, according to a Reuters report.

China’s announcement that it would inject another $1 billion in the solar industry this year—bumping up its support of solar power companies—was another piece of good news, even if China’s subsidies of its solar sector has sparked some concern among trade partners, Reuters reports.

 

ETF.COM CHANNELS

Trying to figure out alternatives ETFs? Use our alternatives ETFs channel, library and ETF screener!

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

'JNK' and 'BSV' led ETF creations Friday, Aug. 28, as investors piled into fixed-income ETFs at the expense of equity funds.

'QQQ' and 'SPLV' paced Invesco PowerShares' issuer-leading outflows Friday, Aug. 28, as total U.S.-listed ETF assets hit $2.039 trillion.

ETF.COM ANALYST BLOGS

By Dave Nadig

With many ETFs currently trading well off fair value, what’s an ETF investor to do? Don’t panic.

By Matt Hougan

Out-of-favor funds can bring attractive returns.

By Matt Hougan

New data from Charles Schwab show that the death of mutual funds is happening faster than we thought.

By Dave Nadig

Grab the popcorn. Precidian just doubled-down on its nontransparent active ETF proposal with the SEC this morning.

ETF INDUSTRY PERSPECTIVE

By John Del Vecchio

An index that goes long financially sound companies and shorts the ones with problematic balance sheets.

By Dan Draper

The nature of retirement is changing. How can investors adapt?

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.