The Invesco Solar ETF (TAN) is an exchange-traded fund designed to track the performance of companies operating within the global solar-energy industry. The ETF is managed by Invesco and trades under the ticker TAN on the NYSE Arca.

Classified as a thematic equity ETF, the fund provides exposure to businesses involved in solar-panel manufacturing, photovoltaic project development, energy-storage technologies, renewable-energy infrastructure, and other segments connected to the solar-power value chain.

The ETF follows a passive management approach and seeks to replicate the performance of the MAC Global Solar Energy Index, a benchmark composed of companies that generate a significant portion of their revenue from solar-related activities.

Diversification and sector exposure

TAN provides exposure primarily associated with:

• Solar energy.

• Photovoltaic equipment.

• Solar-project developers.

• Clean-energy technologies.

• Energy storage.

• Renewable-power infrastructure.

• Energy transition.

• Global renewable-energy companies.

The portfolio includes companies from multiple countries and across different parts of the solar ecosystem, ranging from module manufacturers and component suppliers to utility-scale developers and specialized service providers.

The ETF’s performance is closely tied to growth in renewable-energy adoption, technological advancements in solar power, and public- and private-sector investment aimed at decarbonizing energy systems.

Structure and costs

TAN shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed to shareholders according to the fund’s distribution policy.

Because the ETF concentrates its investments in a specific segment of the energy market, it may experience higher volatility than broad-market equity funds, particularly during periods marked by regulatory changes or shifting expectations for the renewable-energy sector.

History and evolution of the ETF

The Invesco Solar ETF was launched in 2008 with the objective of providing investors with access to the global solar industry through a single exchange-traded vehicle.

Since inception, the fund has reflected multiple growth and consolidation cycles within the solar-power industry, tracking the expansion of photovoltaic generation capacity across major markets worldwide.

In recent years, growing attention to energy transition, carbon-emissions reduction, and renewable-energy technologies has increased the importance of the solar sector, shaping the performance of the companies represented in the ETF’s portfolio.

Additional Information

Invesco Solar ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $905.54 million.

Over the past 12 months, Invesco Solar ETF recorded a return of -16.55%, with its price trading between $39.83 and $73.93 during the same period.

The ETF is traded under the ticker TAN.