The Guggenheim Solar ETF (NYSEArca: TAN), the largest exchange traded fund dedicated to solar stocks, jumped nearly 3% yesterday, bringing its year-to-date gain to over 14%. Interestingly, TAN’s 2017 resurgence comes against what some solar market observers thought would be a politically challenging backdrop.
Although TAN performed poorly during President Obama’s eight years in office, expectations were in place that President Donald Trump would present new obstacles for solar stocks. Price is what matters and price action in TAN confirms the ETF is dealing with President Trump just fine for now.
“Only three of the 25 stocks in TAN’s underlying basket have declined (Thursday), with the rest rising. SunPower (SPWR) has seen the biggest gains so far today, rising 14.5%. Even though, Washington D.C.-based Levi & Korsinky LLP filed a lawsuit against the company alleging foul play today as did Klein Law Firm a couple days ago,” reports Crystal Kim for Barron’s.
The clean energy sector found support under President Barack Obama as the administration pledged to fight against global warming and climate change through heavy subsidies into green technology. However, Trump, who called climate change a hoax perpetrated by China, pledged to cancel last year’s Paris climate agreement and remove Obama’s Clean Power Plan, could reverse years of supportive alternative energy policies.