4-Star ETFs Poised to Pop: Guggenheim Solar
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Guggenheim Solar ETF (NYS: TAN) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Guggenheim Solar and see what CAPS investors are saying about the ETF right now.
Guggenheim Solar facts
|Total Assets||$75.7 million|
|Investment Approach||Seeks investment results that correspond generally to the performance of the MAC Global Solar Energy Index of solar stocks.|
|1-Year / 3-Year Annualized Returns||(60.8%) / (33.5%)|
|Major Holdings With High CAPS Interest (at least 1,000 Active Picks) and Portfolio Weight|
First Solar (NAS: FSLR) (13%)
MEMC Electronic Materials (NYS: WFR) (5.3%)
Trina Solar (NYS: TSL) (3.8%)
Market Vectors Solar Energy ETF (NYS: KWT)
PowerShares Global Clean Energy (NYS: PBD)
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 93% of the 462 members who have rated Guggenheim Solar believe the ETF will outperform the S&P 500 going forward. These bulls include latinoeconomist and All-Star kirkydu, who is ranked in the top 2% of our community.
Just last month, latinoeconomist tapped Guggenheim Solar as a cheap way to get some sun: "Get tanned at half price. The collapse of a sector ETF makes no sense, especially when countries like Japan, Germany, China and the US are going in the direction of solar, wind and other renewable energy."
Guggenheim Solar, in particular, sports a portfolio whose stocks average a cheapish P/E of 9.4. That represents a discount to other green ETF alternatives like Market Vectors Solar Energy (11.1) and PowerShares Global Clean Energy (12.9).
CAPS All-Star kirkydu elaborates on the bull case:
Solar energy has reached near grid parity in the southwestern U.S. during peak energy production periods due to significant increases in efficiency over the past five years. Efficiency continues to improve, production is becoming less costly and fossil fuels have stable to increasing costs by comparison. Over the next decade, regardless of government support, solar will move from a middle of the night infomercial to prime time, as solar makes market progress naturally. The Guggenheim Solar Energy Index ETF, TAN, is one of two great ways (Market Vectors Solar Energy) to have a concentrated position in solar as the sector outperforms from current price levels which are severely oversold on European debt concerns and industry consolidation.
What do you think about Guggenheim Solar, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track theGuggenheim Solar ETF?Add it to your watchlist.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of First Solar. Motley Fool newsletter services have recommended buying shares of First Solar. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.