What Are Solar ETFs?
For investors who believe that solar power will account for a greater portion of the global energy market going forward, there are several ETFs that focus exclusively on this industry. Solar power ETFs include the Guggenheim Solar ETF (TAN) and the Market Vectors Solar Energy ETF (KWT). Each of these ETFs includes both domestic and international stocks engaged in various aspects of solar power generation. Component companies include companies that produce solar power equipment and products for end-users, companies that produce fabrication products (such as the equipment used by solar cell and module producers to manufacture solar power equipment) or services (such as companies specializing in the solar cell manufacturing or the provision of consulting services to solar cell and module producers) for solar power equipment producers, and those that supply raw materials or components to solar power equipment producers or integrators.