The TAN ETF Is Tantalizing Investors with Strong Holdings, Returns
Amid expectations that political change will provide more fuel for the renewable energy boon, the
Invesco Solar ETF (TAN) has stood out as one of the best-performing non-leveraged exchange traded funds over the past year.
TAN, which started back in 2008, seeks to track the investment results of the MAC Global Solar Energy Index, which is designed to provide exposure to companies listed on exchanges in developed markets that derive a significant amount of their revenues from the following business segments of the solar industry: solar power equipment producers including ancillary or enabling products.
Both TAN and PBW were recently featured in a Financial Times article. Given that both funds posted gains of over 200% within the past year, it’s easy to see why.
TAN, which started back in 2008, seeks to track the investment results of the MAC Global Solar Energy Index, which is designed to provide exposure to companies listed on exchanges in developed markets that derive a significant amount of their revenues from the following business segments of the solar industry: solar power equipment producers including ancillary or enabling products.
“The Invesco Solar exchange traded fund, which has $3.7bn in assets, had risen 238 percent since the start of the year as of Christmas Eve, topping a league table of US ETFs and mutual funds that invest in equities, as compiled by Morningstar,” the FT article said. “Among the ETF’s top holdings are two providers of residential solar power, Enphase Energy, which has risen almost 600 percent in value, and Sunrun, which is up 400 percent
Check Out This Pair of Invesco ETFs With Stellar Returns December 23, 2020
The sun and clean energy: those are the two hints you get to figure out this pair of ETFs from Invesco that have been providing stellar returns in a pandemic-riddled year. Answer: the
The pair topped a list of top 10 ETFs that have been providing 100% returns or better this year in The Street article. Here’s what they had to say about both funds:
“TAN is the first of three Invesco ETFs on the list, all focused on clean energy. This fund more narrowly targets the solar energy space and is up more than 170% year-to-date. Interestingly, TAN is still down more than 50% since its 2008 inception.”
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You might be wondering why Arizona-based First Solar is on this list. FSLR has had an excellent six months, rewarding shareholders with triple-digit gains since May. Then how come I think you should give this a stock a rest.
Well, my thesis is based on two factors: thin-film solar technologies and China.
Thin-film production market share in the global solar PV market grew from a mere 2.8% in 2001 to 25% in 2009. However, post-2009, the situation has become very different. In 2011, thin-film solar technologies constituted 11% of the global solar panel production, marking a steep drop in uptake.
Expectations are that thin-film solar PV technology will eventually outpace conventional solar PV technology in the long run. However, the writing is on the wall. It will be tough for First Solar and other thin-film solar panel makers to compete against silicon solar panel makers. The technology was already dominating the market before 2009. But the