Invesco Solar ETF tracks industry leaders across continents

Invesco Solar ETF is focused heavily on the global solar energy segment, with its technology, utility, industrial and energy stockholdings around the world. The solar energy industry has been growing due to increasing global demand for renewable energy sources and supportive government policies.

That’s why this fund is worth considering: it offers broad diversification if you want exposure to this area of the renewable energy industry.

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

Its top holdings are First Solar (China; solar panels), 16.0%; Enphase Energy (U.S.; home solar systems) at 9.3%; NEXTracker Inc. (U.S. solar trackers), 8.1%; GCL Technology (China; polysilicon), 5.3%; Sunrun (U.S.; panels), 4.8%; and Encavis AG (Germany; renewable electric energy producer), 4.4%.

The ETF’s MER is a relatively high 0.67%.

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ETFs: Invesco Solar ETF down since 2021, but the long-term outlook remains bright

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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