Invesco Solar ETF: Capitalizing on the Rising Demand for Solar Power

Invesco Solar ETF is focused on the global solar energy segment, with its technology, utility, industrial and energy stockholdings around the world. The solar energy industry has slowed lately but still has growth ahead.

In fact, expanding demand for renewables, including solar, continues to be spurred by increasing electricity demand from electric vehicles and data centers, decreasing installation costs, and supportive government policies.

Technological advancements are also enhancing solar energy’s efficiency and scalability, making it increasingly competitive with traditional energy sources. The sector’s ability to reduce carbon footprints and its safety record also make it an attractive option for environmentally conscious investors and consumers.

INVESCO SOLAR ETF (New York symbol TAN) tracks solar-related companies (including technology firms and utilities) listed on global exchanges.

These companies include solar power equipment producers, solar energy storage system companies, raw materials and components suppliers, solar power system installation and maintenance providers, and solar equipment fabrication system manufacturers.

The fund’s top holdings are First Solar (China; solar panels), 9.9%; NEXTracker Inc. (U.S. solar trackers), 8.2%; GCL Technology (China; polysilicon), 8.1%; Enphase Energy (U.S.; home solar systems), 7.4%; Xinyi Solar (China; solar panels), 5.1%; and Sunrun (U.S.; panels), 4.5%.

The Invesco Solar ETF’s MER is a relatively high 0.67%, while the dividend yield is 0.5%.

Invesco Solar ETF: Long-term outlook still sound for solar stocks

Renewable stocks have drifted down since early 2021; that follows big run-ups in 2020 on U.S. President Joe Biden’s support for sun, wind and hydro power—plus strong investor interest in stocks gaining from environmental concerns. Still, the long-term outlook for renewables remains strong as governments and corporations move steadily away from fossil fuels.

If you’re looking for exposure to the expanding solar power industry, the Invesco Solar ETF provides you with broad diversification.

Recommendation in Canadian Wealth Advisor: Invesco Solar ETF is a buy.

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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