The market recovered in September after volatility spiked on the Syria crisis in late August. Among the best performing sector plays, clean energy, Brazil financials and lithium exchange traded funds lead the charge.
In September, the Guggenheim Solar ETF (NYSEArca: TAN) rose 27.1%, Market Vectors Solar Energy (NYSEArca: KWT) gained 24.0% and PowerShares Wilderhill Clean Energy Portfolio (NYSEArca: PBW), a fund that tracks a broader range of companies dealing with renewable sources of energy, increased 15.9%. [Solar ETF is Almost Unstoppable]
The solar industry has dazzled so far this year, outpacing all other sectors, and the out-performance may not be over yet.
Installations of photovoltaic systems are on the rise and could continue to increase as more people go green. [Solar ETF’s 90% Rally May Only be the Beginning]
The Chinese government is also providing a helping hand. China’s Ministry of Finance said it will give tax breaks to solar products manufacturers in an effort to help those companies still grappling with tepid demand. [They Don’t Need It, But Solar ETFs Get More Good News]
Harris Roen for Clean Technica points out that the sector enjoys continued secular decline in the overall cost of production, rise in innovative solar financing options and maturing solar technologies. However, he also warns that the sector could see some volatility due to continued low electric prices due to cheap natural gas, consolidation of Chinese producers and government support for renewables.
The Global X Brazil Financials ETF (NYSEArca: BRAF) rose 17.6% in September. [Bank on Brazilian Banks With This Small ETF]
Brazil-related ETFs have a large stake in the financial sector, and investors can target Brazilian financial stocks directly with BRAF.
Brazilian lenders have been struggling due to the slowing economy, decline in interest rates and increased competition between private-sector and state-run lenders.
The Global X Lithium ETF (NYSEArca: LIT) increased 17.0% In September.
New ion batteries from smartphones to electric cars has bolstered demand for rare earth metals like lithium. If Tesla Motors (NasdaqGS: TSLA) is any indication, the trend will likely continue.
According to a Global X note, automotive and industrial applications of lithium batteries made up 36% of the total lithium batteries market, and demand for lithium from these sectors is expected to expand at annualized rates of 37% and 18%, respectively, from 2012 to 2016.
For more information on sector picks, visit our sector ETFs category.
Max Chen contributed to this article.