The Market Vectors Solar Energy ETF

The Market Vectors Solar Energy ETF (NYSE: KWT) is another interesting solar energy ETF quoted on the New York Stock Exchange. It seeks to replicate the performance of the Ardour Solar Energy Index (SOLRX). The Ardour Solar Energy Index SM is calculated and maintained by Dow Jones Indexes. The index tracked included  companies from around the world deriving at least two thirds of their revenues from solar power and related products and services. solar_energy

The top holdings in the ETF (June 9, 2009) are:

  • Solarworld AG 9.25 %
  • First Solar Inc 7,93 %
  • Yingli Green Energy Holding Co Ltd 7.66 %
  • MEMC Electronic Materials Inc 7.39 %
  • Sunpower Corp 7.26 %
  • Suntech Power Holdings Co Ltd 6.52 %
  • JA Solar Holdings Co Ltd 5.40 %
  • Trina Solar Ltd 5.11 %
  • SMA Solar Technology A.G. 5.01 %
  • Q-Cells AG 3.95 %

During the last three months the index has seen a huge rally. It was 1148.65 on 9th March 2009 and now the index has risen to as high as 2393.54.This means the PE ratios should be a lot higher than the reasonable 14.43 of April 30, 2009.

If the price of the oil continues to rise, the solar sectory will most probably also gain during the next months. The connection between the oil price and alternative energy sector indices is something that must be remembered: if the price of oil goes up, alternative energy stocks will gain. If the price of oil goes down, alternative energy will lose as well.

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