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The iShares Global Clean Energy ETF is significantly more affordable with an expense ratio of 0.38% compared to 0.7% for the Invesco Solar ETF. The Invesco Solar ETF provides concentrated exposure to the solar industry with 36 holdings, while the iShares Global Clean Energy ETF offers broader diversification across 105 positions.
Renewable-energy mandates in blue states are a major driver of higher electricity bills, adding directly to the cost-of-living problem.
Six months into the U.S.-Israeli war with Iran, governments across Europe and Asia are scrambling to accelerate a renewables build-out in a bid to cut dependence on fossil fuel imports, providing a fresh impetus to the global energy transition.
Invesco Solar ETF (TAN) is rated a strong sell due to persistent sector headwinds and market saturation risk. Despite explosive global solar PV growth, TAN underperformed the S&P 500 by 112% over five years, driven by price deflation and margin erosion. Grid adaptation, storage costs, and seasonal intermittency create structural bottlenecks, capping further solar penetration and undermining bullish forecasts.
Bank of America Corp DE increased its position in shares of Invesco Solar ETF (NYSEARCA:TAN) by 9.5% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 325,356 shares of the exchange traded fund's stock after purchasing an additional 28,203 shares
State Street SPDR S&P Oil & Gas Exploration & Production ETF is more cost-efficient with an expense ratio exactly half that of Invesco Solar ETF. Invesco Solar ETF has experienced a much larger maximum drawdown of 74% over the last five years compared to the State Street fund.
The Invesco Solar ETF (NYSEARCA:TAN) closed Wednesday at $52.47, up roughly 7% year to date while the S&P 500 has returned about 14%.
The Alerian MLP ETF (AMLP) has $13.3 billion in assets under management, making it much larger than the $1.3 billion Invesco Solar ETF. The Invesco Solar ETF exhibits significantly higher volatility with a beta of 1.41, while the Alerian MLP ETF has a more stable beta of 0.50.