Securities lending boosts Guggenheim's solar ETF

|About: Guggenheim Solar ETF (TAN)|By:, SA News Editor

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