The Invesco Solar ETF (NYSE:MKT:TAN) is a top exchange-traded fund (ETF). It had $814.9 million in assets under management as of early 2025. The fund's diversification and focus have made it a popular choice with a wide range of investors across trading styles and risk tolerance levels.
This guide will teach you everything you need to know about the Invesco Solar ETF and how to invest in ETFs for beginners.
Overview
What is the Invesco Solar ETF?
The Invesco Solar ETF is an exchange-traded fund that tracks the MAC Global Solar Energy Index. This index tracks companies in the global solar energy industry. The ETF is designed for investors seeking long-term growth and is run by Invesco (IVZ -0.39%).
Invesco is an independent investment management firm that offers a variety of products and services. They manage assets for both individual and institutional investors. Invesco is a major provider of ETFs, with strategies for equity, fixed income, commodities, and more.
The Invesco Solar ETF invests at least 90% of its total assets in the securities, American depositary receipts (ADRs), and global depositary receipts (GDRs) that make up the MAC Global Solar Energy Index. The ETF contained 42 holdings as of February 2025.
Exchange-Traded Fund (ETF)
How to invest
How to buy the Invesco Solar ETF
It’s very easy to buy shares of the Invesco Solar ETF. You can buy shares directly through your brokerage account. Here’s a step by step guide for investors.
- Step 1: Open your brokerage app: Log into your brokerage account where you handle your investments. When choosing a brokerage account, you can consider your financial goals, risk tolerance, and the types of investments you want to make. You will want to compare fees, commissions, and trading platforms. You should also consider your investment options on a given platform and the quality of the customer service that the brokerage provides.
- Step 2: Search for the ETF: Enter the stock ticker "TAN" or the name of the fund into the search bar to bring up the ETF's trading page. Make sure you have fully researched the ETF and have a strong thesis to buy and keep it in your portfolio for the long run. While analyzing an ETF will be a bit different from studying a stock, you should consider factors such as its strategy, expense ratio, and investment track record. Then, compare those elements with similar investments to determine if the ETF makes sense for your portfolio.
- Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF. If you are interested in investing in the solar energy space but don't know where to start, the benefit of an ETF like the Invesco Solar ETF is that you can put your cash to work and be instantly diversified.
- Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay. A market order instructs a broker to buy or sell a security immediately at the current market price, while a limit order instructs a broker to buy or sell at a specified price or better. Limit orders may have higher execution costs than market orders. Many long-term investors prefer to use market orders.
- Step 5: Submit your order: Once you've opened and funded your brokerage account, set your investing budget, and are ready to buy shares of the Invesco Solar ETF, the process is straightforward. Confirm the details and submit your buy order.
- Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected, and adjust your investment strategy accordingly. Many brokerages allow orders to be placed outside of market hours. Assuming you've placed a market order rather than a limit order, you should see shares of the Invesco Solar ETF added to your account immediately.
Holdings
Holdings of the Invesco Solar ETF
The Invesco Solar ETF holds 42 stocks with an average market cap of $4.6 billion. As of early 2025, the top 10 holdings of the Invesco Solar ETF are as follows:
- NEXTracker Inc (NXT 1.91%): 11.08%
- Enphase Energy Inc (ENPH -0.13%): 8.77%
- First Solar Inc (FSLR 3.33%): 8.11%
- GCL Technology Holdings Ltd (GCPEF -2.76%): 6.11%
- Xinyi Solar Holdings Ltd (OTC:XISHY): 4.66%
- Sunrun Inc (RUN 2.98%): 4.54%
- HA Sustainable Infrastructure Capital Inc (HASI -0.54%): 3.92%
- Neoen SA (OTC:NOSPF): 3.86%
- Array Technologies Inc (ARRY 1.33%): 3.46%
- Dago New Energy Corp ADR (DQ 0.52%): 3.43%
When broken down by sector, Invesco Solar ETF’s largest sector allocations are in information technology (46.7%), utilities (26.5%), and industrials (22.8%). The ETF’s top five country allocations include the United States, China, Israel, Taiwan, and Spain.
Should I invest?
Should I invest in the Invesco Solar ETF?
Making any investment is a personal decision. You need to make sure it aligns with your goals, values, and risk tolerance. When it comes to the Invesco Solar ETF, there are a few reasons you might consider taking a position.
Investing in an ETF like this one can allow you to benefit from the growth stories of numerous top companies involved in the solar energy space without being overly concentrated in a single stock. The solar industry is expected to continue growing over the long term, with solar power anticipated by some to become one of the world's largest renewable energy sources in the coming decades.
You might also consider this ETF if you want an investment that can deliver returns that roughly match those of the MAC Global Solar Energy Index. If you have a healthy risk appetite and want to put cash into an industry that holds significant promise in the coming decades, this ETF could be worth a second look.
On the other hand, there are some reasons that the Invesco Solar ETF might not be the right choice for some investors. While the solar industry is expected to play a major role in the future of energy, the last few years have been extremely turbulent for this space due to mixed regulation messages surrounding renewable energy sources and slowing adoption rates among consumers. Investors who have a low risk appetite or are closer to retirement may want to look elsewhere.
Dividends
Does the Invesco Solar ETF pay a dividend?
The Invesco Solar ETF pays a dividend. It yields around 0.48% as of early 2025, lower than the average S&P 500 stock, which tends to yield around 1.3% to 1.5%.
Expense ratio
What is the Invesco Solar ETF's expense ratio?
The Invesco Solar ETF's expense ratio is 0.67%. A $10,000 investment in the fund would cost about $67 annually.
Expense Ratio
Historical performance
Historical performance of the Invesco Solar ETF
The Invesco Solar ETF is intended to track the returns of the MAC Global Solar Energy Index. Let's see how the ETF has delivered on that objective over the years.
| 1 Year (%) | 3 Year (%) | 5 Year (%) | 10 Year (%) | |
|---|---|---|---|---|
| MAC Global Solar Energy Index | -19.61 | -18.79 | 1.14 | -0.22 |
| TAN Net Asset Value | -20.02 | -19.30 | 1.11 | 1.06 |
| After Tax Held | -20.11 | -19.34 | 1.07 | 0.64 |
| After Tax Sold | -11.79 | -13.89 | 0.85 | 0.59 |
| Fund Market Price | -19.66 | -19.44 | 1.17 | 1.01 |
Related investing topics
The bottom line on the Invesco Solar ETF
Investors looking for a more predictable industry, or an ETF with a low expense ratio and/or higher dividend yield may prefer to put cash to work into a different fund. However, for investors who want to take a slice of the action in solar companies worldwide, the Invesco Solar ETF may be a solid choice. While this space is volatile, well-diversified investors may appreciate the broad exposure to the solar space that the ETF provides without having to put cash into individual solar stocks.
FAQ
Investing in the Invesco Solar ETF FAQs:
What is the symbol for Invesco Solar ETF?
The ticker symbol for Invesco Solar ETF is TAN.
Is TAN ETF a good investment?
The Invesco Solar ETF may be a solid choice for some investors looking to diversify within the solar space.
Which solar ETF is the best?
The Invesco Solar ETF is a top ETF containing companies operating in the solar energy space.
Should I invest in solar ETFs?
Solar energy stocks aren’t for every investor, but solar ETFs can provide instant diversification to companies in this space for investors with a healthy risk appetite and interest in this industry.
