ETF Trends
ETF Trends

Solar exchange traded funds (ETFs) are up as much as 3% today after a major holding got a nod of approval from Goldman Sachs.

First Solar (NASDAQ: FSLR) was added to Goldman’s conviction buy list. The bank also estimated that the company would earn $9.40 this year, but that the estimate could be too conservative, says Jason Smith for Tickerspy.

That Goldman likes First Solar is no small thing; it’s a top component in both Market Vectors Solar Energy (NYSEArca: KWT), of which it’s 10.1%, and Guggenheim Solar (NYSEArca: TAN), of which it makes up a whopping 20.1%.

Both ETFs got a lift last week from a few other solid performers, including GT Solar International (NASDAQ: SOLR), which gained nearly 11% last week, and LDK Solar (NYSE: LDK), which surged nearly 9%.

TAN has 3.1% of both SOLR and LDK; KWT owns 3.6% of each.

In the last year, solar ETFs have lost 11.5% as the sector struggled to gain traction amid lower fuel prices. Now they’ve been staging a turnaround, gaining 11.6% in the last month alone. Goldman’s nod toward one of the sector’s largest players could be what pushes them over the edge.

For more stories about the solar sector, visit our category.

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.