Clean Energy ETF PBW Plummets Amid Rising Interest Rates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 07 2026
0mins
Source: Yahoo Finance
- Interest Rate Surge: May nonfarm payrolls surged to 172,000, significantly exceeding the 80,000 consensus, pushing the two-year Treasury yield to a 16-month high of 4.16%, which directly suppressed the valuations of clean energy ETFs like PBW, which fell approximately 11% on June 5 from $46 to $41, indicating sensitivity to rising long-term rates.
- Negative Cash Flow Impact: Enphase Energy and First Solar dropped 18% and 11% respectively, with cash-flow-negative companies hit hardest, reflecting the increased pressure on clean energy firms reliant on future cash flows in a high-rate environment, which also dragged down PBW's performance.
- Long-Term Underperformance: Although PBW has gained 34% year-to-date, it remains 47% below its 2021 peak, indicating persistent underperformance of the clean energy theme during the rising rate cycle, highlighting market concerns over future cash flow discounting.
- Uncertain Future Outlook: The future performance of PBW hinges on the stability of the 10-year Treasury yield and the continuity of tax credit policies; any fluctuations in these factors could lead to further depreciation of the fund, prompting investors to closely monitor interest rate trends and related policy changes.
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Analyst Views on FSLR
Wall Street analysts forecast FSLR stock price to rise
23 Analyst Rating
18 Buy
4 Hold
1 Sell
Moderate Buy
Current: 254.800
Low
150.00
Averages
280.35
High
335.00
Current: 254.800
Low
150.00
Averages
280.35
High
335.00
About FSLR
First Solar, Inc. is a photovoltaic (PV) solar technology and manufacturing company. It is focused on enabling power generation needs with its advanced, thin film PV technology. The Company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. Third-party customers of the segment include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. The Company's products include the Series 7 Module and Series 6 Plus module. Its Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. Its Series 7 module has a larger form factor of approximately 4ft x 7ft in size. The Series 6 Plus and Series 7 modules had an average power output of 464 watts and 532 watts, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- ESG-Friendly Investment: Another ETF tracks the S&P 500 Scored & Screened Index with a 0.10% expense ratio, excluding companies that do not meet ESG criteria, offering broad exposure to large-cap U.S. equities while appealing to ESG-conscious investors.
- Market Volatility Considerations: The clean energy and solar sectors are significantly affected by policy changes and market fluctuations, necessitating careful risk assessment by investors, particularly those seeking stable income, as these high-volatility assets may not be suitable.
See More
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