The solar industry has been hit hard as the price of solar cells plummeted, but solar exchange traded funds have found a bright spot after leading solar firms reported strong quarterly earnings.
Now, the Guggenheim Solar ETF (NYSEArca: TAN) is trading 3.0% above its 50-day exponential moving average and Market Vectors Solar Energy ETF (NYSEArca: KWT) is 3.9% above its 50-day EMA, the first time either fund was above their short-term trends since February.
Earlier this month, First Solar (NasdaqGS: FSLR) revealed a 81% jump in second quarter profits. Additionally, GT Advanced Technologies (NasdaqGS: GTAT) also reported better-than-expected earnings. [First Solar Earnings Lift ETFs]
On Monday, the First Solar surged over 7% during trading, with volume at almost 7 million shares, compared to its average of 6.1 million, reports Bolton Flautt for Expedated.
GTAT increased 1.2% on Monday.
The two companies are among the solar ETFs’ largest holdings with, FSLR making up 7.8% of TAN and 13.0% of KWT and GTAT accounting for 6.8% of TAN and 8.5% of KWT.