Niche ETFs that focus on solar energy companies soared Tuesday after top holding First Solar (NasdaqGS: FSLR) released 2013 guidance that topped Wall Street forecasts.
First Solar shares spiked nearly 50% in afternoon trading.
The stock represents 14.6% of Guggenheim Solar ETF (NYSEArca: TAN) and 9.6% of Market Vectors Solar Energy (NYSEArca: KWT).
First Solar said it expects full-year earnings between $4 and $4.50 a share, excluding up to $10 million in restructuring expense. Analysts polled by Thomson Reuters are looking for EPS of $3.51 a share, on average.
TAN and KWT, the solar ETFs, were up 15% and 11%, respectively, at last check on Tuesday.
However, the specialized funds have languished for two years after crashing in 2011. For example, TAN lost 30.7% last year after dropping 63.4% in 2011, according to Morningstar.
Guggenheim Solar ETF
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. 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.