ETF That Resisted Virus Scare In February & Its Top Stocks

Invesco Solar ETF (TAN - Free Reporttopped the list of the best performing ETFs in last month’s virus-led broad market sell-off with impressive returns of about 13.4%.

The rally was primarily driven by increased focus on climate change. Several factors including coal plant retirements, falling costs for renewables and continued technological innovation are fueling the need for new solar projects. Additionally, the rise of sophisticated storage assets has made solar more attractive. Further, upbeat earnings from Enphase Energy (ENPH - Free Report) and SolarEdge Technologies (SEDG - Free Report) led to a strong rally in the ETF.

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 11% of the assets. U.S. firms dominate the fund’s portfolio with nearly 49.2% share, followed by China (22.2%) and Spain (7.3%). The product has amassed $594.8 million in its asset base and trades in a solid volume of around 299,000 shares a day. It charges investors 71 basis points 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 U.S. stock exchange outperformed. Below, we have highlighted those 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 skyrocketed 55.4% in February. It has seen positive earnings estimate revision of 26 cents for this year over the past month and has an expected earnings growth rate of 33.7%. ENPH currently has a Zacks Rank #1 (Strong Buy) and a Growth Score of A. The stock occupies the second spot in the fund’s portfolio, making up for 10.8% share.

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