It was not thought to be a “Trump Trade,” but the Guggenheim Solar ETF (NYSEArca: TAN) and the VanEck Vectors Solar Energy ETF (NYSEArca: KWT) are proving to be surprisingly strong this year.
For example, TAN, the largest solar exchange traded fund, is up nearly 9% even as many investors assumed alternative energy stocks would be imperiled with Donald Trump in the White House.
KWT tracks a group of global companies involved in photovoltaic and solar power, or the provision of solar power equipment/technologies and material or services to solar power equipment/technologies producers. TAN also follows global companies involved in the solar industry and the entire value chain.
Solar stocks slid last year as increased competition pushed prices lower while customers pushed off on purchases in hopes of further cheaper prices, especially with Chinese companies raising production. Still, there are some positive signs.