Solar Energy ETFs: Don't Get Burned
These volatile indexes show that sometimes there's little safety in numbers. Analysts suggest picking individual stocks instead
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With sky-high oil prices hitting new records seemingly every week, interest in solar energy burns bright. But investors have found shares of companies that provide solar-power gear to be among the most volatile in the entire stock market.
Shares of leading players like First Solar (FSLR) and SolarWorld (SRWRF.PK) routinely trade up or down by more than 10% in a day. On June 19, shares of Evergreen Solar (ESLR) surged 20% on news that the solar wafer maker had signed two long-term contract deals. But the next day, they dropped 8% when there was no significant news to drive the stock.