Underscoring just how tough this year has been on solar stocks, the Guggenheim Solar ETF (NYSE: TAN) fell nearly 1 percent Wednesday, the same day investors absorbed news of Tesla Motors Inc (NASDAQ: TSLA) bidding $2.8 billion for SolarCity Corp (NASDAQ: SCTY), one of TAN's largest holdings.
Is TAN About To Get Burned?
TAN has been stymied on multiple fronts this year. In previous periods of rising oil prices, solar stocks and TAN have participated in some of that upside, but that is not the case this year. Second, short sellers have been voraciously attacking some TAN constituents, a frequent occurrence with this exchange traded fund, and winning.
Additionally, TAN's 33.4 percent year-to-date loss belies what some view as encouraging solar sector fundamentals and compelling valuations.
For example, another catalyst widely viewed as positive: Earlier this year, Congress introduced legislation that includes an ...
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