“In addition, panel prices have fallen faster than expected because China pulled back its subsidies for the renewable power source in June, creating an oversupply of modules in the global market that has eroded the impact of the tariff,” according to Reuters. “Module prices averaged 42 cents a watt in the second quarter, the report said, 2 cents higher than the same period in 2017 but far below the 48 cents a watt they hit late last year as the industry fretted about a looming duty on imports.”
Related: 4 Solar ETFs Pummeled as China Pulls the Plug
The utilities sector’s highly domestic has been an advantage at a time of escalating trade tensions between the U.S. and major trading partners, such as China. Additionally, XLU yields almost 3.25%, well above the dividend yield on the S&P 500 or 10-year Treasury yields.
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