Just In Time for Warm Weather, Claymore Launches Solar ETF

[ETF Trends]

ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)

While there are several clean energy exchange traded funds (ETFs) out there, none of them have focused solely on one aspect of the sector until now.
Claymore this morning launched the Claymore/MAC Global Solar Energy Index (TAN) on the NYSE Arca. Claymore President Christian Magoon told us the potential for growth in the solar industry is huge. Currently, it accounts for less than 1% of global electricity.
Magoon says in Europe and Asia in particular, there has been a bigpush for solar energy. "Europe and Asia have done a good job from agovernment standpoint, encouraging people with tax credits and rebates."
In the United States, he says, some local governments are doing somethings to push for more solar energy and general energy efficiencyover all. In New York, residents receive credits for things likecaulking and weather stripping. There are also personal tax credits ofup to $5,000 for solar energy systems, reports Mindy Pennybacker for Plenty Magazine.
On the national level, Congress is currently dealing with an energycredit law that's likely to be passed. If it goes through, all forms ofalternative energy could see a big boost. The proposal would continueexisting tax incentives for producing energy from wind, sunlight andother renewable resources, reports Benton Ives for the Congressional Quarterly.

"It's important for people to know there's a lot of potential in solar," Magoon says.
Over the last 20 years, he says, the cost of solar energy has gonedown about 5% a year, with the last few years being an exception -demand and the evolution of solar technology has pushed the prices up.
TAN has about 25 constituents, and 25% of those are based in theUnited States. There's more of a focus on Europe and Asia, consideredthe leaders in solar energy development. Companies in the fund areinvolved in solar equipment, materials and service providers, and theyderive a significant portion of their revenue from solar work.
The fund will have a 0.65% expense ratio, and the index will rebalance quarterly.


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