ETFs With Exposure To First Solar Stock

| March 2, 2015 | 0 Comments

solar panelsIf you own First Solar (FSLR) stock, then your stock portfolio is off to a great start this year.  The solar energy company’s stock is up 31% so far this year to $59.75.

Needless to say, FSLR’s 31% gain this year is crushing the S&P 500 that’s only up 2.5% this year.

Alt TAG- First Solar Stock has been on fire.

The most recent uptick in FSLR’s stock price has been driven by the announcement of a partnership with SunEdison (SUNE).

The two solar manufacturers will form a publicly traded ‘yield company’ that will own and operate solar power assets in order to generate revenue for investors.

This is a huge development for FSLR and the solar industry in general.  This partnership essentially creates a new source of demand for FSLR and SUNE products.

Needless to say, the demand created by the yieldco gives much more visibility to the future growth for FSLR.  This could be the blueprint for other solar companies to scale up production.   What’s more, it could also put solar power on the fast track to grabbing more market share away from traditional energy sources.

ETFs that have exposure to First Solar stock are a good way add FSLR, SUNE, and other solar energy stocks to your portfolio.

3 ETFs with exposure to First Solar stock…

The three ETFs with the largest weighting of FSLR all focus on solar stocks.

Guggenheim Solar ETF (TAN) has the largest weighting of FSLR at 7.39%.  Market Vectors Solar Energy ETF (KWT) has the second largest weighting of FSLR at 6.33%.  And, Market Vectors Global Alternative Energy ETF (GEX) is next with a 4.39% weighting to FSLR.

What’s more, these three ETFs also have sizable weighting of SunEdison. SUNE represents 8.82% of TAN, 7.73% of KWT, and 6.96% of GEX.

So, TAN’s 16.21% weighting toward SUNE and FSLR gives you great exposure to this new yieldco partnership.

ETFs with First Solar Stock Expense Ratios… 

Another way to differentiate these ETFs is based on expense ratio.

TAN comes with the highest expense ratio at 0.70%.  KWT is the next highest at 0.66%.  And, GEX has the lowest expenses at 0.62%.

These expenses eat into your returns.  But the difference between these three ETFs with a large weighting of First Solar stock aren’t that big.

Other holdings in the ETFs with First Solar stock…

TAN holds FSLR, SUNE, and 25 other solar stocks.  SUNE is the 2nd largest holding and FSLR is the 3rd largest holding.

KWT holds FSLR, SUNE, and 35 other solar stocks.  SUNE is the 2nd largest holding and FSLR is the 4th largest holding.

GEX holds FSLR, SUNE, and 30 other stocks in the alternative energy industry.  SUNE is the 4th largest holding and FSLR is the 8th largest holding.

There are clearly some differences between these three ETFs that hold First Solar stock.  But they all offer a simple way for you to get exposure to FSLR and SUNE as they embark on a new partnership that should benefit both companies for years to come.

Good Investing,

Corey Williams

Note: Corey Williams writes and edits ETFTradingResearch.com.   Sign up for our free ETF reports and free e-letter at http://etftradingresearch.com/free-sign-up. We’re devoted to helping you make more money from ETFs.

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Category: Sector ETFs

About the Author ()

Corey Williams is the editor of Sector ETF Trader, an investment advisory service focused on profiting from ETFs and the economic cycle. Under Corey’s leadership, the Sector ETF Trader has become one of the most popular and successful ETF advisories around. In addition to his groundbreaking service, Corey is the lead contributor to ETF Trading Research, where he shares his insights about ETFs and financial markets three times a week. He’s also a regular contributor to the Dynamic Wealth Report and the editor of one the hottest option trading services around – Elite Option Trader.

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