Despite concerns that the current administration is putting the green agenda on the back burner, solar exchange traded funds have brightened on the global outlook for clean energy.
The Guggenheim Solar ETF (NYSEArca: TAN), the largest exchange traded fund dedicated to solar stocks, surged 32.7% year-to-date.
A number of bullish factors have supported the rebound in solar stocks, including continued strong overall world demand for solar, especially from India, Latin America, the Middle East and Southeast Asia; greater demand for solar power due to increasingly competitive price of solar, compared to alternatives as countries seek to meet carbon-reduction targets under the Paris climate agreement; and continued low valuations, relative to pricier U.S. large-caps, according to MAC Solar Index, the index provider for the underlying benchmark of TAN.