Solar Installation Hits A Record In 2020: ETF To Tap The Boom

Further, the industry fundamentals have been robust for the solar energy. This is primarily thanks to declining solar panel prices that will continue to attract new buyers, who want to save on otherwise uncertain energy costs. Rising demand for a broad range of solar products such as solar-powered generators, portable smartphone chargers, outdoor motion sensor lights, backpacks, and cookers also bode well for the industry.

Given the encouraging trends, industry research firm IBISWorld estimates that U.S. solar power revenues will more than double at $19.4 billion by 2026 from the 2020 revenues of $8.23 billion.  

In order to capitalize on the booming solar industry, investors should invest in the only pure-play Invesco Solar ETF (TAN - Free Report).

TAN in Focus

This ETF offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index, holding 37 stocks in the basket. It is concentrated on the top two firms — Enphase Energy (ENPH - Free Report) and SolarEdge Technologies (SEDG - Free Report) — with 11.5% and 8.6% of assets, respectively, while the other firms hold no more than 7% share in the basket.

American firms dominate with 48.2% of the fund’s portfolio, followed by China (26.1%) and Spain (6.7%). The product has amassed $3.7 billion in its asset base and trades in a solid volume of around 2.8 million shares a day. It charges investors 69 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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