Dion's Weekly ETF Blog Wrap

NEW YORK (TheStreet) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next.

Here are three of his blog posts from the past week:

---

The Future of Solar

Published 11/09/2010 2:57 p.m. EST

As part of my morning routine, I skim through the list of the "most active" stocks on Nasdaq.com, which helps to paint a picture of what investors are tuned in to on that particular exchange. While there are sometimes firms I've never heard of (small-cap tech or pharma, mostly), one subsector keeps showing up: solar energy.

I've used this blog before to discuss how solar energy firms can be difficult to predict and very volatile, which is all the more reason that bullish investors should use an ETF to capture this sector's momentum. While firms like First Solar (FSLR) and JA Solar (JASO) are no strangers to the list of biggest Nasdaq gainers, you'll also spot them on the biggest losers list from time to time.

LDK Solar (LDK), which reported Q3 results after the bell yesterday, is certainly helping to fuel the performance of the Claymore/MAC Global Solar Energy ETF(TAN) today. Although the fund itself is beginning to slip lower in afternoon trading, LDK's outperformance last quarter helped TAN to get off to a good start this morning.

> > Bull or Bear? Vote in Our Poll

Also boosting TAN are JA Solar and Solarfun (SOLF), which both beat estimates this morning when reporting Q3 results.

Even if you missed the run-up in TAN ahead of the slew of solar reports this morning, it's not too late to profit from this unique energy ETF. TAN may be fading in the short term, but investors with a longer time horizon should consider outlook, not just earnings. LDK, JASO and SOLF all reported that business was shaping up to be even better in the months ahead and that consumer demand was strong.

Looking forward, investors should consider building TAN into a well-balanced energy portfolio. While the volatility of individual solar firms might cause your blood pressure to spike, TAN helps to reduce security-specific risk and the impact of any single component's volatility. The future of solar energy is looking bright, and TAN is a good way to get exposure.

At the time of publication, Dion Money Management had no positions in the stocks mentioned.