PUTTING MONEY IN SUN

Make Money in Solar Energy the Easy Way
Selena Maranjian, August 16, 2011 (Motley Fool via Daily Finance)

"…If you expect the solar energy industry to thrive as we finally develop alternatives to oil and gas, the Guggenheim Solar ETF (NYS: TAN) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously…

"…The solar ETF's expense ratio -- its annual fee -- is 0.75%, which is a bit on the steep side for an ETF but still lower than many stock mutual funds…This ETF has performed disappointingly so far over the past three years…Investors with conviction need to wait for their holdings to deliver…With a low turnover rate of 17%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do…"

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"Some of this ETF's components made strong contributions to its performance over the past year. GT Advanced Technologies (NAS: GTAT) gained 47% and recently reported strong growth…Other companies pulled the ETF's return down last year, but could have a positive effect in the years to come. Chinese wafer maker ReneSola (NYS: SOL)…with fellow wafer and cell suppliers LDK Solar and JA Solar (NAS: JASO)…[face] some pressure as global demand isn't growing as rapidly as expected…

"Demand for solar energy is likely to grow ... eventually. If you think solar energy's time is coming soon, consider a solar ETF like this one. A well-chosen ETF can grant you instant diversification across the industry -- and make investing in and profiting from the sector that much easier."