Invesco Solar ETF

Invesco Solar ETF (TAN) tracks the MAC Global Solar Energy Index. The index holds about 29 companies around the world that earn at least a third of their revenue from solar power, including equipment makers, installers and solar power producers. The fund is narrower than broad clean-energy funds, and it costs more than any of the seven similar funds it was compared with: 0.70% a year, against a peer average of 0.50%. Its price swings have been extreme.

• Over the year to Oct 27, 2026, TAN returned -14.1%, 5th of 8 among similar funds.
• Its 5-year annualized return was -14.8% and its 10-year +8.8%.
• In the 2020 COVID crash it fell 46.9% and regained its old high 3.7 months after the low.
• Its worst full calendar year was 2011 (-63.4%); its best was 2020 (+233.9%).
• The deepest fall in its price history was 95.3% (May 16, 2008 to Nov 20, 2012), not yet recovered.

As of Aug 31, 2026, the fund held 35 securities; the ten largest made up 56.58% of assets. It also reported 34.33% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Aug 31, 2026, investors withdrew a net $472.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -20.03%, -16.51%, -3.14%.

TAN follows the MAC Global Solar Energy Index. The index provider, MAC Indexing, pays S&P Dow Jones Indices to calculate and run it. To qualify, a company must earn at least one-third of its revenue from solar businesses. These include panel and inverter makers, tracking-system and battery suppliers, installers and financers, and companies that sell solar electricity. Stocks must also be listed in one of 26 named countries, trade often enough to meet liquidity rules, and pass environmental, social and governance (ESG) screens. As of October 31, 2025, the index had about 29 members, with market values from about $214.1 million to $28.6 billion.

The fund uses "full replication": it owns every stock in the index in the same proportions, and puts at least 90% of its assets in those stocks. It is "non-diversified," which means it can hold large stakes in a few companies. As of May 31, 2026, its 10 largest holdings made up 65% of the fund. They were led by First Solar (11.7%), Nextpower (9.8%) and Enphase Energy (8.8%). US companies made up 53% and Israeli companies about 20%.

Because the fund is passive, it keeps a struggling stock until the index drops it. The May 31, 2026 report showed no derivatives. The 22% cash position appears to be mostly collateral from securities lending, where the fund lends its shares to other investors for a fee. Portfolio turnover was 41%.

• TAN charges 0.7% a year, versus an average of 0.5% for the similar funds below (8th of 8, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $72 in the first year and $871 over 10 years (assuming a 5% annual return).

TAN is a concentrated bet on one industry, with very large price swings and no income, so it fits at most as a small add-on around a broader core.

TAN could add focused exposure to solar companies, but its history shows how hard it can be to hold. Its deepest drop was 95.3%, from May 16, 2008 to November 20, 2012, and its price had still not returned to that peak as of October 27, 2026. It lost 63.4% in 2011 and 37.09% in 2024. In the 2020 COVID crash it fell 46.9% in about a month, then recovered by July 2020. In 2022 it fell 27.5% and recovered by late July. Anyone forced to sell during one of these slumps would have locked in heavy losses. It paid no income in the 12 months to October 27, 2026. Its 0.70% expense ratio ($72 in the first year on $10,000, under the SEC's standard example) is the highest of eight similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.