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Solar Stocks and ETFs Drop Following EU Decision

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Solar ETF drops

The Guggenheim Solar ETF (TAN) lost 2.7% on May 6. American solar stocks account for 47% of the fund’s holdings, while Chinese solar stocks account for another 44%. Hanergy Thin Film Power Group is the biggest holding of the fund, with a weight of over 11%. SunEdison (SUNE) (8.24%) and First Solar (FSLR) (6.76%) are two major American holdings of this ETF.

The broad-based SPDR S&P 500 ETF (SPY) dropped 0.4%. Out of 11 solar companies we track, only Green Plains Renewable Energy (GPRE) advanced. The European Union (or EU) decided to review a minimum import price agreement for Chinese solar panels, pulling the solar stocks down.

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Top losers

American Depository Receipts (or ADRs) of mostly Chinese companies took the largest beating on the stock markets.

  • Renesola (SOL) ADRs dropped 5.5% to $1.56, with a market capitalization of $158 million. Renesola manufactures polysilicon, solar wafers, solar cells, and solar modules. To learn more about the solar power value chain, please read the Market Realist series Investing in renewable energy: The solar power industry.
  • Colorado-based Ascent Solar Technologies (ASTI) lost 4.4% to end the day below $1. The company manufactures thin film material.
  • Canadian Solar (CSIQ) lost 3.6% to end the day at $34.64, with a market capitalization of $1.9 billion. Canadian Solar manufactures solar photovoltaic modules in its facilities, which are largely located in China.
  • ADRs of JA Solar Holdings (JASO) dropped 2.6% to end the day at $9.78, with a market capitalization of $493.6 million.
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