Solar energy exchange traded funds were sharply lower Wednesday as a disappointing forecast from LDK Solar (NYSE: LDK) and pricing worries clouded the volatile sector.
Weakness in prices for solar products will eat into profit margins for SunPower Corp (NasdaqGS: SPWRA) and LDK Solar, the companies said, according to Reuters.
LDK shares fell 4% Wednesday while another sector ETF component, Trina Solar (NYSE: TSL), dropped about 8%.
The stocks are holdings in alternative energy ETFs such as Market Vectors Solar Energy (NYSEArca: KWT), Guggenheim Solar ETF (NYSEArca: TAN) and iShares S&P Global Clean Energy (NasdaqGM: ICLN). The solar ETFs suffered losses of more than 3% Wednesday.