First Solar Boosts Sector ETFs on Loan Guarantees

by: Tom Lydon
First Solar (NasdaqGS: FSLR) shares were enjoying an 8% rally Thursday after the U.S. Energy Department announced offers of conditional commitments for loan guaranties of $4.5 billion.

“These projects will bring immediate jobs to California in addition to hundreds more across the supply chain,” said U.S. Energy Secretary Chu. “Together the projects will power hundreds of thousands of homes with clean, renewable power and increase our global competitiveness in the clean energy economy.”

First Solar accounts for 19% of Guggenheim Solar ETF (NYSEArca: TAN) and 11% of Market Vectors Solar Energy (NYSEArca: KWT). Both ETFs rallied more than 3% on Thursday.

The solar ETFs have bounced recently after Google (NasdaqGS: GOOG) said it is taking part in an alternative energy investment plan.

Other clean energy ETFs include Market Vectors Global Alternative Energy ETF (NYSEArca: GEX), PowerShares Global Clean Energy Portfolio (NYSEArca: PBD) and iShares S&P Global Clean Energy Index Fund (NYSEArca: ICLN).

Market Vectors Solar Energy