Tag Archives: $TAN

As Predicted, The Sun Has Set On The Solar ETF’s Rise

After months of warnings from market watchers, the Chinese solar stock, Hanergy Thin Film Power Group, started to set on a pretty powerful year so far. MarketsMuse blog update profiles the effects this Chinese stock has had on the Guggenheim ETF, which MarketsMuse has profiled before. This MarketsMuse update is courtesy of MarketWatch’s Victor Reklaitis and his article, “China solar stock implosion a reminder to look under ETF’s hood

Many market watchers have warned this year about a highflying Chinese solar stock—Hanergy Thin Film Power Group—and its leading role in popular ways to bet on solar stocks like one Guggenheim ETF.

On Wednesday, Hanergy’s 0566, -46.95% aerial routine ended with a crash, as one Wall Street Journal headline put it. And the Hong Kong-listed stock’s dive after a meteoric rise was helping to take down the Guggenheim Solar ETF TAN, -7.79%

So what’s the takeaway?

“Investors should take care to look under the hood of the ETFs in order to understand what exposure they are possibly buying into,” said Markit analyst Relte Schutte in an email to MarketWatch on Tuesday about the solar ETF and Hanergy.

Schutte had noted in a May 6 commentary that about half of the Guggenheim ETF’s year-to-date jump of 40% was due to Hanergy’s surge of 157%. The ETF was about 12% exposed to Hanergy as of Tuesday, before its big plunge, making it the largest stock in that fund. Hanergy also has been the biggest holding in two rival ETFs, the Market Vectors Solar Energy ETF KWT, -6.88% and iShares Global Clean Energy ETF ICLN, -2.57%

To continue reading about the implications the crash the Hanergy Stock has had on the solar ETFs, click here.

Solar ETFs Continue to Rise Thanks to China

MarketsMuse blog update profiles solar ETFs such as Guggenheim Solar ETF (NYSEARCA:TAN) and Market Vectors Solar Energy ETF (NYSEARCA:KWT) bright future thanks to China’s clean energy drive. This update  is courtesy of Seeking Alpha’s article, “China’s Clean Energy Drive Brightens Solar Power ETFs” by ETFTrends reporter, Tom Lydon, with an extract below.

China revealed a huge surge in photovoltaic panel installations over the first quarter, a typically slow season for the industry, and if the country maintains its pace, it could portend a strong year for solar stocks and sector-related exchange traded funds.

Year-to-date, the Guggenheim Solar ETF (NYSEARCA:TAN) jumped 40.8% and the Market Vectors Solar Energy ETF (NYSEARCA:KWT) increased 30.3%.

On Monday, the China National Energy Administration announced that the country added 5.04 gigawatts of solar capacity, or just shy of France’s entire solar capacity, in the first three months of the year, Bloomberg reported.

China is planning to install as much as 17.8 gigawatts of solar power this year, or two-and-a-half times the capacity added by the U.S. in 2014, as part of its aggressive plans to cut carbon emissions. For instance, the country’s recent move away from small coal plants will avoid the annual release of as much as 11.4 million metric tonnes of carbon dioxide, which could help cut emissions for the first time in over a decade, Today Online reports.

Chinese companies make up 22.9% of TAN’s underlying holdings and a hefty 38.4% of KWT’s portfolio.

To continue reading about the effects that China’s push for clean energy has on the solar ETFs, click here.

ETFs, solar

Solar ETFs Shine Bright

You might need some SPF 100 after the 1st Quarter. MarketsMuse blog update profiles the huge come back solar stocks and ETFs have had after a rocky year, last year. MarketsMuse blog update is courtesy of ETFTrends’ Max Chen’s article, “Solar ETFs Perform Radiantly in Q1“. An excerpt from ETFTrends is below.

Solar stocks and related exchange traded funds have powered ahead and are among the leading sectors over the first quarter after underperforming the equities market last year.

The Guggenheim Solar ETF (NYSEArca:TAN) is the third best performing ETF for the first three months of the year. TAN has increased 31.6% year-to-date. [Solar ETFs: Industry Growth Not Reflected in Market]

Additionally, other clean energy ETFs were among the top ten performing non-leveraged ETFs so far this year, including the iShares Global Clean Energy ETF (NYSEArca:ICLN), which rose 22.8%, and the Market Vectors Solar Energy ETF (NYSEArca:KWT), which gained 22.6%. ICLN tracks a broader exposure to clean energy stocks, including solar, wind and other renewable resources.

To read the full article from ETFTrends, click here.