Behind The Surge In Solar ETFs

The ETF is relatively illiquid in nature, trading in a small volume of 2,600 shares a day. Still, KWT is up 73.8% year-to-date and has increased 74.1% over the period of one year (3 Top Performing Energy ETFs in Focus Now).

On the other hand, TAN has a larger asset base of $213.1 million with 29 stocks. Hanergy Solar Group ltd, First Solar Inc (NASDAQ:FSLR) and Trina Solar LTD occupy the first three positions in the fund.
The ETF is heavily concentrated in the technology sector, while small and mid cap stocks dominate from a cap perspective. The product trades in a good volume of more than 333,421 shares a day. The fund charges 70 bps in fees and expenses.

TAN has emerged as a top performing non-leveraged ETF after several years of dreadful performance. TAN has not only reached its all-time high but has exceeded it.

Bottom line

Solar energy refers to energy released by the sun which is converted into electricity. Although this energy accounts for a very small portion of the energy market, it has made successful gains in the financial world.

In fact, in years to come, solar ETFs could turn out to be a good alternative energy investment. This is especially true if the current positive trends continue, with both technological innovation and oil prices remaining firm.

This article is brought to you courtesy of Eric Dutram.

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