is invesco solar etf a buy
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Invesco Solar ETF Earns Honor Among Best ETFs in 2020


Dec. 31 2020, Published 10:28 a.m. ET

The Invesco Solar ETF tracks the MAC Global Solar Energy Index. The index features companies in the solar energy industry. Inclusion in the index is based on net return. Is the Invesco Solar ETF a good investment? 

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The Invesco Solar ETF shares trade on NYSEArca under the ticker symbol “TAN.” The fund has at least 90 percent of its portfolio invested MAC Global Solar Energy Index companies. With a YTD return of more than 230 percent, TAN ranks as one of the best-performing sector ETFs in 2020.

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Invesco Solar ETF's top holdings

The fund’s top holding is Enphase Energy, which accounts for 10.8 percent of its portfolio. Its other top holdings are SolarEdge Technologies at 8.76 percent of the portfolio, Xinyi Solar at 7.78 percent, Sunrun at 7 percent, and First Solar at 6.24 percent. The Invesco Solar ETF rebalances its holdings quarterly. 

Investors debate the Invesco Solar ETF on Stocktwits

As the Invesco Solar ETF wraps up the year as one of the best-performing sector ETFs in 2020, many investors have taken to Stocktwits to share their thoughts on the fund. 

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A Stocktwits investor going by the tag Neotrades thinks that TAN is a great place to put your money. The investor plans to hold TAN shares for 20 years because going green is a priority for many countries. The future looks bright for the fund’s portfolio companies. Stocktwits investor Snaildown is bullish on the Invesco Solar ETF and will buy more on any pullback. 

Most investors commenting on Stocktwits are bullish on the clean energy fund. However, not everyone is convinced about the fund’s prospects. A Stocktwits investor going by the tag Inflict doesn't like the Invesco Solar ETF right now.

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Invesco Solar ETF pays a annual dividend

The fund pays an annual dividend. Its latest dividend distribution was $0.092 per share, which it paid out on Dec. 31. It distributed a dividend of $0.090 per share in 2019 and $0.129 per share in 2018. 

TAN Invesco Solar ETF's forecast

Many investors are wondering whether TAN Invesco Solar ETF can move higher. Looking at what is going on around the world with climate change, you see strong tailwinds for clean energy sector. After the TAN fund soared in 2020, some investors will be moving to take profit, which would put near-term pressure on the shares. For the long-term, however, the fund has plenty of potential to go up from current level.

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Should I buy the Invesco Solar ETF?

Investors seeking global exposure to the clean energy sector may find the Invesco Solar ETF attractive for their portfolio. TAN shares would also appeal to dividend investors. The incoming Biden administration has favorable climate plans that should benefit the fund’s portfolio companies. The opportunity looks even more attractive considering that nearly half of the fund’s portfolio is in U.S. companies.


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