Tuesday, April 22, 2008

From Those Wonderful Folks Who Brought You MOO, Market Vectors Solar ETF (KWT, TAN)

Just a reminder, this ETF based on Ardour's Solar index (SOLRX) will begin trading today.
Although it will be correlated with the Claymore solar ETF there are enough differences in components, weighting and construction that it is definitely a tool to have in the toolbox.
The top five (of 27) constituents are:

10.75% Q-Cells
10.44% First Solar
9.82% Renewable Energy Corp
9.55% Solarworld
4.91% Suntech

Weighting Methodology.
SOLRX, which currently includes 27 stocks, employs a modified float-adjusted market capitalization weighting methodology. The weight of any individual stock is capped at 10% and the combined weight of all stocks with weights over 5% is capped at 40%. This weighting methodology allows for an accurate distribution of weights from large-capitalization stocks through mid-capitalization, while assuring that companies in the portfolio offer sufficiently high levels of liquidity and price discovery.

I'm having trouble bringing up the Index Insights PDF. I'll figure it out. In the meantime
Our earlier post.
Here's Ardour
Here's Van Eck