Most index ETFs trail their benchmarks over time by about the amount of their expenses, but the Guggenheim Solar ETF (TAN) has beaten the MAC Global Solar Energy Index by a median 360 basis points each year over the past few.
How? Like a number of other funds, TAN lends some of its holdings to investors - often shorts - in exchange for a fee which can get quite large when shorting demand is high. Since the fund's 2008 inception, "TAN had a portfolio of stocks the Street desperately wanted to short," says ETF.com's Dave Nadig.
Other solar ETFs: KWT