Trump May Be Bad News for Clean Energy ETFs | Page 2 of 2 | ETF Trends


Consequently, the outlook for solar energy, wind power and other renewables appear less certain under a Trump administration. Investors may witness continued weakness in the renewables sector and clean energy-related ETFs. For starters, the Guggenheim Solar ETF (NYSEArca: TAN) and the Market Vectors Solar Energy ETF (NYSEArca: KWT) track global solar photovoltaic panel producers. The First Trust Global Wind Energy Fund (NYSEArca: FAN) focuses on the wind industry. Over the past week, TAN fell 4.1%, KWT dropped 6.4% and FAN was down 4.7%.

ETF investors can also track the broader green energy industry through the PowerShares WilderHill Clean Energy Portfolio (NYSEArca: PBW) and First Trust NASDAQ Clean Edge Green Energy Index Fund (NasdaqGS: QCLN), which both track U.S. clean energy companies, including solar photovoltaics, biofuels and advanced batteries.

On the other hand, Trump could make fossil fuel great again. If the Trump administration is able to roll back some of the recently implemented green initiatives, fossil fuel industries that include coal and energy could strengthen.

ETF investors can also target these areas with sector plays. For instance, the VanEck Vectors Coal ETF (NSYEArca: KOL) tracks the global coal industry. Additionally, the Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy ETF, provides diversified exposure to integrated energy producers, along with some energy equipment and services exposure.