5 Best-Performing Stocks Of The Top ETF Of 2019 So Far

Invesco Solar ETF (TAN - Free Reporttopped the list of the best-performing ETFs so far this year with impressive returns of about 54%.

The rally was primarily driven by a rebound in global solar demand, competitive pricing and potential Chinese subsidies. Some states including California are using solar subsidies to boost the adoption of solar power. Additionally, California’s push to make solar panels indispensable to all new homes built in 2020 and beyond is bolstering the solar industry.

The strongest-ever solar installation and the exemption of tariff on one type of solar panels also added to the upside. The U.S. trade representative relieved the bifacial solar panels from solar tariffs, which are currently 25% of the cost of imported solar panels. Higher oil prices are also contributing to the solar stock rally.

Let’s take a closer look at the fundamentals of TAN.

TAN in Focus

This ETF offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index, holding 22 stocks in the basket. It is moderately concentrated across components, with each making up for not more than 10.1% of the assets. American firms dominate the fund’s portfolio with nearly 45.9% share, followed by China (24.5%) and Germany (9%). The product has amassed $399.8 million in its asset base and trades in solid volume of around 240,000 shares a day. It charges investors 70 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

Though most of the stocks in the fund’s portfolio delivered strong returns, some stocks listed on the American stock exchange outperformed. Below, we have highlighted the five best-performing stocks in the ETF with their respective positions in the fund’s basket:

Best-Performing Stocks of TAN

Enphase Energy Inc. (ENPH - Free Report): The stock has skyrocketed more than 413% in the year-to-date timeframe. It has seen positive earnings estimate revision of 10 cents for this year over the past three months with an expected earnings growth rate of 790%. ENPH currently has a Zacks Rank #3 (Hold) and a favorable VGM Score of B. The stock occupies the fourth position in the fund’s portfolio, making up for 7.2% share.

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