Solar ETFs Flying High on Analysts' Boost | ETF Trends

Solar exchange traded funds (ETFs) led the charts today thanks to a buy recommendation for one of the sector’s largest players.

Goldman Sachs just added First Solar (NASDAQ: FSLR) to its buy list, citing the company’s efforts at cuttings costs and reducing its exposure to debt-laden European markets.

The upgrade, says Murray Coleman at Barron’s, in turn lifted other industry members including Trina Solar (NYSE: TSL), JA Solar (NASDAQ: JASO) and Yingli Green Energy (YGE), all of which are up as much as 5.5% in trading today.

The two existing pure-play solar ETFs, which are heavy in the above companies, are up nearly 5.5% in trading today:

  • Market Vectors Solar Energy (NYSEArca: KWT): First Solar is 10.8%; Trina is 9.2%; Yingli is 4.6%; JA Solar is 4%.
  • Guggenheim Solar (NYSEArca: TAN): First Solar is 21%; Trina is 6.6%; Yingli is 4.1%; JA Solar is 3.3%.

It’s just the latest bit of good news for a sector that many analysts think has the potential to outperform this year after last year’s slide.

  • Oil prices are moving higher again. Interest in green energy technologies often moves inversely to the price of oil and other fossil fuels.  [Clean Energy ETFs Building Momentum.]
  • President Obama recently stated his goal to have 80% of power coming from clean energy sources by 2035, which could spark a push for more legislation.
  • It’s been a good year for solar so far: in the last month, solar ETFs have gained about 12%. [Solar ETFs Get a Boost from Goldman.]

Tisha Guerrero 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.