Solar ETFs Glimmer With The Help Of High Oil Prices
May 15th at 3:00pm by Tom Lydon
Solar exchange traded funds (ETFs) appear to be basking in the sun as ever-rising energy prices are sending people looking for less expensive alternatives.
Two companies of interest are JA Solar (JASO) and Evergreen Solar (ESLR) who have experienced high first-quarter earnings. Market Vectors Solar (KWT) and Claymore/MAC Global Solar Energy (TAN) are up 7.7% and 9.5% respectively so far this week, reports Rob Wherry for Smart Money.
Both funds are still new kids on the block: KWT was launched on April 23, and it’s up 4.6% since then. TAN was the first solar ETF available, launching on April 15. Since then, it’s up 10.9%.
Will the flood of investors driven to solar continue, even if oil prices retreat? Time will tell. Oil futures fell today, settling at $122.20 a barrel. It’s the weakest level since May 8, say Myra P. Saefong and Polya Lesova for Market Watch. Natural gas prices also fell by 3% after a bigger-than-expected jump in supplies was reported.
