The solar industry is still in its infancy, and the economics and possibilities of proposed technologies are still experimental. An ETF is a good way to gain multiple company exposure to the sector, while relatively new businesses get off the ground. Government subsidies, and demand and expansion for solar energy in China, India the United States are necessary for the sector to strengthen. [First Solar and ETF Reactions to German Energy Move.]
Guggenheim Solar ETF (NYSEArca: TAN) provides global exposure to companies in the solar manufacturing business. SunPower is a holding in TAN at about 4%. Market Vectors Solar energy (NYSEArca: KWT) is another sector ETF.
Guggenheim Solar ETF
Tisha Guerrero contributed to this article.