The Five Best Sector ETF Plays of September

ETF Trends

The market recovered in September after volatility spiked on the Syria crisis in late August. Among the best performing sector plays, clean energy, Brazil financials and lithium exchange traded funds lead the charge.

In September, the Guggenheim Solar ETF (TAN) rose 27.1%, Market Vectors Solar Energy (KWT) gained 24.0% and PowerShares Wilderhill Clean Energy Portfolio (PBW) , a fund that tracks a broader range of companies dealing with renewable sources of energy, increased 15.9%. [Solar ETF is Almost Unstoppable]

The solar industry has dazzled so far this year, outpacing all other sectors, and the out-performance may not be over yet.

Installations of photovoltaic systems are on the rise and could continue to increase as more people go green. [Solar ETF’s 90% Rally May Only be the Beginning]

The Chinese government is also providing a helping hand. China’s Ministry of Finance said it will give tax breaks to solar products manufacturers in an effort to help those companies still grappling with tepid demand. [They Don’t Need It, But Solar ETFs Get More Good News]

Harris Roen for Clean Technica points out that the sector enjoys continued secular decline in the overall cost of production, rise in innovative solar financing options and maturing solar technologies. However, he also warns that the sector could see some volatility due to continued low electric prices due to cheap natural gas, consolidation of Chinese producers and government support for renewables.

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