5 Worst Performing Industries in 2023

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1. Solar

Industry ETF: Global X Solar ETF (NASDAQ:RAYS)

YTD Performance of Industry ETF as of October 31: -44.40%

The solar industry is currently experiencing a significant downturn. Persistent inflation and increasing interest rates have resulted in declining demand for solar power systems. Consequently, installation companies are forced to negotiate lower prices for components, resulting in reduced profit margins for companies in the solar sector. Enphase Energy, Inc. (NASDAQ:ENPH), a market leader in the solar space, presented a negative outlook for the remainder of the year. Badrinarayanan Kothandaraman, the CEO of Enphase, said during the latest earnings call on October 27:

“We have seen a substantial demand reduction in Europe. We have also seen the U.S. market continue to fall, driven by California.”

One of the solar ETFs significantly down in 2023 is Global X Solar ETF (NASDAQ:RAYS), making it one of the worst performing industries this year. Global X Solar ETF (NASDAQ:RAYS) was established on September 8, 2021. The Global X Solar ETF (NASDAQ:RAYS) aims to track the Solactive Solar Index’s performance. It invests in companies connected to the solar technology industry, including those in solar power production, energy system integration, and the development of solar-related technologies. As of October 30, 2023, the ETF’s net assets amount to $5.88 million and it features an expense ratio of 0.51%.

First Solar, Inc. (NASDAQ:FSLR) is one of the largest holdings of Global X Solar ETF (NASDAQ:RAYS). First Solar, Inc. (NASDAQ:FSLR) offers PV solar energy solutions worldwide, designing and selling cadmium telluride solar modules that convert sunlight into electricity. According to Insider Monkey’s second quarter database, 51 hedge funds were long First Solar, Inc. (NASDAQ:FSLR), up from 39 funds in the last quarter.

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