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ETF Spotlight: Solar Energy


Investors have sought out Chinese markets to capitalize on this global engine of growth, and now solar companies are expanding into China’s photovoltaic market. In the meantime, exchange traded fund investors can play the expansion through solar-related funds.

First Solar (FSLR) will supply 2 megawatts of its thin-film solar panels for use in western China and SunPower Corp. (SPWR) will invest $15 million to build and install concentrating solar-power systems in Inner Mongolia and other regions in China, reports Christopher Martin for Bloomberg. [First Solar Earnings Lift ETFs]

Sanjay Shrestha, an analyst at Lazard Capital Markets, expects the deals to boost sales in China, which is projected to become the largest solar market in 2013.

“China has the potential to be a major market for solar and this gets them a foot in the door,” Shrestha said in the article. “You don’t want to ignore the Chinese market but it’s difficult to say whether there will be any profit opportunity.”

China will install at least 3,980 megawatts of solar panels in 2013, pushing the country past Germany and Italy, the top two markets this year.

Solar ETFs include:

  • Guggenheim Solar ETF (TAN): FSLR is 9.6%; SPWR is 5.0%
  • Market Vectors Solar Energy ETF (KWT): FSLR is 14.4%; SPWR is 4.7%

Guggenheim Solar ETF

For more information on solar power, visit our solar category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.