shot up this week, buoyed by a successful initial public offering
of one of Silicon Valley's largest clean-energy companies at a time
when the market was already supported by reports that China plans
to increase its investment in solar power.
The $49 million Guggenheim Solar ETF (NYSEArca:TAN) and the $11
million Market Vectors Solar Energy ETF (NYSEArca:KWT) were the
best-performing U.S.-listed ETFs Wednesday, posting gains of 8.5
percent and 6.3 percent, respectively.
Their performance is even more impressive on a five-day stretch.
TAN has tallied nearly 18 percent in gains since Dec. 7, while KWT
is up 16 percent in the same period. The rally has been
unaccompanied by net inflows, according to IndexUniverse's ETF
For solar energy enthusiasts, the recent run-up is a welcomed
reprieve from what has been one long year of losses in solar funds,
as the segment faces collapsing prices while output capacity
Year-to-date, both TAN and KWT have bled roughly a third of
their value, and those losses look even steeper on an annual chart.
TAN has lost 40 percent in the past year, while KWT is off by 37
Still, SolarCity-one of Silicon Valley's largest U.S. installers
of residential solar system-successfully raised $92 million in its
initial public offering Wednesday, after the IPO was postponed for
The company, which has a market valuation of $584.6 million, has
seen its revenue grow fourfold in the last five years, according to
a Reuters report.
China's announcement that it would inject another $1 billion in
the solar industry this year-bumping up its support of solar power
companies-was another piece of good news, even if China's subsidies
of its solar sector has sparked some concern among trade partners,
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