- FAN’s top holdings have all delivered negative returns YTD causing FAN to trade sideways since April, resulting in underperformance compared to the general market.
- COVID-19 upstream pressure, logistics issues and lacking ability to transfer price increases downstream have resulted in windmill manufacturer guidance revisions.
- A weak operational performance YTD combined with increased offshore windfarm tender competition could prove to dampen performance for windfarm operators.
- The industry outlook for wind power remains strong long term, but short-term headwinds could force FAN into trading sideways.
- An ETF such as FAN can limit investor exposure to individual company volatility during times of changing market conditions.
For further details see:
FAN: Facing Immediate Headwinds Suggesting Underperformance