How Much Solar Exposure is there in Tesla Stock?

June 12. 2017. 6 mins read

Solar is in a peculiar position right now. While it’s an incredibly promising segment of the energy sector, short-term outlook is clouded by oversupply, dropping margins and a grim 2017 with governments axing installation incentives and the US withdrawing from the Paris Agreement. These circumstances have caused investment sentiment to turn bearish in Q4 2016 and market perception hasn’t changed since. This concerns us because we’ve been invested in the Guggenheim Solar ETF (NYSEARCA:TAN) for about 5 years now and these are the sort of rubbish returns we’ve realized:

So if we would have held a relatively safe Nasdaq ETF over the past 5 years we would have realized returns of+117%. If you’re like us and you made a diversified investment in solar with TAN hoping that it would outperform the market over the past 5 years, then you would have had your arse handed to you with a measly +6.84% return. That is ridiculous when you look at how much solar has grown over the same time frame:

Needless to say, we’ve come to the realization that

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