Which index will be tracked by the Market Vectors Solar Energy ETF KWT?
Market Vectors Solar Energy ETF KWT fund will attempt to replicate the performance of the Ardour Solar Energy Index, SOLRX. This index is comprised of a group of companies at a global level which are involved in photovoltaic (PV), solar heating and solar lighting business. This index is the pure-play leader in tracking the global solar industry. The Index provides targeted exposure to a select group of companies around the world that derive at least 66% of their revenues from solar energy. On a weighted basis, the companies in the Index derive in excess of 90% of their revenues from the solar industry.
As on 28th July, the Ardour Solar Energy Index, SOLRX index was having 34 constituents. In the order of holdings, here are the top constituent stocks Renewable Energy Corp. ASA REC NO 11.66%, First Solar Inc. FSLR 11.57% , SolarWorld AG SWV GY 10.78% , Q-Cells AG QCE GY 9.59% , SunPower Corp. Cl A SPWR 4.85% , Energy Conversion Devices Inc. ENER 4.48% , Suntech Power Holdings Co. Ltd. ADS STP UN 4.26%. Remaining holdings are less than 4% each.
On the geographical basis, the index is having the following exposure: Germany 37.2%, United States 25.5% , China 20.2% , Norway 9.9% , United Kingdom 4.2% , Spain 2.0% , Canada 1.1%.
What is the expense ratio for investments in Market Vectors Solar Energy ETF KWT?
Till May 2009, the expense ratio for Market Vectors Solar Energy ETF KWT is capped at 0.65% - which makes it a low cost fund.
What are the benefits of investment in Market Vectors Solar Energy ETF KWT?
Market Vectors Solar Energy ETF KWT is an ETF or exchange traded fund, hence one can carry on the trading activities to benefit from intra day trading.
This also provides extra liquidity to benefit from trading activities in Market Vectors Solar Energy ETF.
Index investments are expected to perform better than the individual stock selection skills,
Related Competitor Product: TAN ETF: Claymore MAC Global Solar Energy ETF
What are the risks involved in Market Vectors Solar Energy ETF KWT?
Tracking the index performance is one of the biggest risks in the performance of this Market Vectors Solar Energy ETF. This leads to the concept of Tracking error.
There is a risk of sector underperformance – if solar energy sector does not perform well, then the returns on Market Vectors Solar Energy KWT ETF will be in loss. Another risk is due to foreign exchange or forex risk. Since this ETF is global in nature, there will be significant exposure to forex risk.
This fund also has exposure to emerging market, which may turn out to be risky. Also, the returns may be affected due to security specific local tax laws, accounting methods, geo-political problems, etc.
What are the market details for Market Vectors Solar Energy ETF KWT?
Fund Ticker KWT ,Intraday NAV (IIV) KWT.IV ,Index Ticker SOLRX ,Exchange AMEX , Commencement DATE 04/21/2008 , Gross Expense Ratio 1.09% ,Net Expense Ratio 0.65% ,Options Trading: Available ,AUM : $29.1M
| This Market Vectors Solar Energy KWT ETF can be a good investment for investors looking for Solar Energy specific investments. |
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