UBS Solar Basket Rises 40 Percent Year to Date Ahead of Tariff Decision

The UBS Solar basket (UBXXSOL) is up 40 percent year to date and 33 percent in May, breaking above a five-year downtrend line. UBS analyst Catherine Gordon attributed the gains to falling yields and renewed policy momentum. A Section 232 tariff decision expected in mid-to-late June is cited as the main catalyst. First Solar shares have risen to around $268 during the advance.

Windham hosted Toyo Solar on a call earlier in the day.

The company indicated that measures could include a minimum import price along with tariffs and that domestic manufacturing investments might offset tariff liability. Gordon noted that clean-technology names outperformed on Tuesday, with solar leading alongside other growth baskets as yields declined.

The same statement said the backdrop has been broadly supportive. UBS flagged the residential solar rally in SolarEdge and Enphase as potentially vulnerable to fading and described Enphase's solid-state transformer announcement as non-differentiated.