ETF Update: Solar On the Rise, ETF Transparency, New Vietnam Index

Solar ETFs On the Rise

The solar power industry is booming right now, and perhaps it will soon translate into success for related ETFs. 

A surge in energy prices, combined with generous incentives and tax credits, has given rise to hundreds of small businesses. Most of these are contractors and installers.But some fear that these small business could be primed for a bust, or at least a slowdown.

The main concerns over solar energy is how the energy is financed and distributed, but if larger companies gain traction in this industry, many of the state and power incentives and rebates will disappear, reports Jan Ellen Spiegel for the New York Times.

These incentives are what make this energy affordable to the general public, and also help small businesses tick. Gradually, a disappearance of the 1-3 person business will fade way to larger businesses that can utilize marketing specialists and get competitive pricing from factories and distributors.

But even if the tax credits expire, no one really fears the industry is going to disappear. The energy landscape has shifted drastically.

• Claymore/MAC Global Solar Energy (TAN), down 23.4% since its April 15 inception
• Market Vectors Solar Energy (KWT), down 23.9% since April 23 inception

ETF Transparency

When it comes to ETF investing, transparency is often touted as an advantage. But do you know where to look?

There are many websites to go to, and they usually have a list and breakdown of the single stocks that the fund holds. Another good place to start is the individual provider’s site. For example if it is PowerShares Aerospace and Defense Portfolio (PPA) that you want to research further, you can go to PowerShares’ own site to get information such as expense ratios, holdings and more.

We have a list of providers with links to take you directly to the sites of U.S.-based ETF providers. Everyone has different layouts and ways of doing things, but often just entering the ticker you’d like into the search box on a provider’s site will take you to a page with information about the fund.

Matt Krantz for USAToday explains that the prospectus also has all the information  you would want, but the trick is to read through all of the fine print. A thorough list of holdings can also be found here.

New Vietnam Index

There’s no Vietnam exchange traded fund yet, but there’s already one in registration, and now there’s another index.

Standard & Poor’s has launched the first index tracking the largest and most liquid companies in Vietnam. The S&P Vietnam 10 Index adds to the Asian line of equity indexes within the S&P family. Previously, Vietnam was only tracked within the broad-based Asian indexes, so says Index Universe staff.

Companies to be included in the index must have a float-adjusted market capitalization above $50 million and a three-month average daily trading value above $250,000, and must trade on local Vietnam exchanges. Sectors covered include consumer discretionary, energy, financials, industrials, information technology, materials and utilities. Vietnam is currently classified as a frontier country, and has gained much attention from speculators.

According to insiders, the biggest challenges Vietnam faces right now are human resources development, infrastructure development and economic stability. According to Prime Minister Nguyen Sinh Hung, the Vietnamese has overcome its toughest period. The price growth has reduced, the economy has stabilized and social security is insured, reports Nahn Dan.

While the crisis in the United States will have a negative impact on the country, there are steps they can take to reduce that exposure, such as by diversifying their export markets and increasing trade with other developing countries.