The Guggenheim Solar ETF (NYSEArca: TAN) and the Market Vectors Solar Energy ETF (NYSEArca: KWT), which track global solar photovoltaic panel producers, are tumbling again and that is enticing bearish traders to sink their teeth into TAN, the larger of the two dedicated solar exchange traded funds (ETFs).
TAN fell nearly 1.2% yesterday, bringing its one-month loss to over 5% after Elon Musk’s SolarCity (NasdaqGS: SCTY), a TAN holding, plunged nearly 21% after the company’s guidance fell short of Wall Street expectations.
Related: A Spotlight on Solar ETFs
“Solar stocks are a volatile bunch, but they’re off to a particularly bad start to the year. The ETF has fallen 31% this year. SunPower is down 45% this year, First Solar sank 22%, and Trina Solar American depositary receipts slid 22%. All have fallen so far this week,” reports Ben Eisen for the Wall Street Journal.
First Solar (NasdaqGS: FSLR) is also one of TAN’s largest holdings. Solar stocks and ETFs are struggling despite some factors that should be seen as helpful to the industry.
[related_stories]The renewable energy industry is enjoying further government support after Congress extended the investment tax credit on solar installations through 2023 in exchange for lifting a 40-year ban on U.S. oil exports.