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TAN - ETF AI Analysis

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TAN

Invesco Solar ETF (TAN)

Rating:58Neutral
Price Target:
TAN, the Invesco Solar ETF, has a mixed but generally solid rating, reflecting a portfolio led by strong names like NEXTracker and First Solar, which benefit from robust financial performance, growth, and supportive technical trends. However, weaker holdings such as GCL-Poly Energy and financially strained companies like Sunrun and Doral Energy weigh on the overall score due to high leverage, negative profitability, and bearish technical signals. The main risk factor is the fund’s concentration in solar and renewable energy companies, where several holdings face cash flow pressures, high debt, and volatile price trends.
Positive Factors
Strong Recent Overall Performance
The ETF has delivered solid gains so far this year, showing renewed strength in the solar sector.
Several Strong-Performing Top Holdings
Many of the largest positions, such as Enlight Renewable Energy, SolarEdge, and Doral Energy, have shown strong year-to-date performance, helping support the fund’s returns.
Global Solar Exposure
Holdings spread across the U.S., Europe, and Asia give investors access to solar companies in multiple regions rather than relying on a single country.
Negative Factors
High Expense Ratio
The fund’s management fee is relatively high for an ETF, which can eat into long-term returns compared with lower-cost alternatives.
Concentrated in a Single Industry
Because the ETF focuses almost entirely on solar and related technologies, it can be more volatile and sensitive to sector-specific setbacks than a more diversified fund.
Heavy Weight in a Few Volatile Stocks
A small number of holdings like First Solar and Sunrun make up a large share of the portfolio and have shown weak performance this year, increasing the impact of swings in these individual names.

TAN vs. SPDR S&P 500 ETF (SPY)

TAN Summary

The Invesco Solar ETF (TAN) is a fund that follows the MAC Global Solar Energy Index, focusing on companies involved in solar power. It holds businesses that make solar panels, equipment, and related technology from around the world. Well-known holdings include First Solar and Enphase Energy. Someone might invest in TAN if they believe solar energy will keep growing as countries push for cleaner power and want a simple way to spread their money across many solar companies at once. A key risk is that it is heavily focused on one sector, so its price can swing a lot with changes in the solar industry.
How much will it cost me?The Invesco Solar ETF (TAN) has an expense ratio of 0.71%, meaning you’ll pay $7.10 per year for every $1,000 invested. This is higher than average because it is actively managed and focuses on a specialized niche in the solar energy sector, which requires more research and management effort.
What would affect this ETF?The Invesco Solar ETF (TAN) could benefit from growing global support for renewable energy, advancements in solar technology, and increasing adoption of clean energy solutions, which align with its focus on the solar sector. However, potential challenges include rising interest rates that may increase borrowing costs for solar companies, regulatory changes, or competition from other renewable energy sources. Its global exposure and reliance on technology and energy sectors make it sensitive to economic conditions and shifts in government policies.

TAN Top 10 Holdings

TAN is a pure solar play, and its story right now is one of sharp contrasts. High‑flyers like Enlight Renewable Energy, Solaria, HASI, and Doral are giving the fund a strong tailwind, with steady-to-rising momentum that reflects growing enthusiasm for global clean energy projects. On the other side, big weights like First Solar, Enphase, Sunrun, and GCL are lagging or mixed, acting as a brake on returns as they wrestle with profitability and demand headwinds. Overall, the ETF is tightly concentrated in solar technology and equipment, with a distinctly global footprint.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nextpower Inc9.68%$156.28M$18.03B183.75%
78
Outperform
First Solar9.51%$153.63M$20.82B40.32%
75
Outperform
Enlight Renewable Energy7.91%$127.81M$12.28B447.15%
77
Outperform
Enphase Energy5.68%$91.71M$4.71B-24.17%
61
Neutral
SolarEdge Technologies4.93%$79.67M$2.79B273.36%
49
Neutral
Sunrun4.74%$76.48M$2.99B73.73%
52
Neutral
HASI4.44%$71.68M$5.34B63.55%
70
Outperform
GCL Technology Holdings Limited4.36%$70.39MHK$33.22B38.54%
38
Underperform
Solaria Energia y Medio Ambiente4.20%$67.82M€3.08B268.64%
76
Outperform
Doral Energy4.17%$67.38M₪14.00B498.02%
54
Neutral

TAN Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
56.08
Positive
100DMA
54.20
Positive
200DMA
48.95
Positive
Market Momentum
MACD
0.54
Negative
RSI
50.10
Neutral
STOCH
67.02
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TAN, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 55.79, equal to the 50-day MA of 56.08, and equal to the 200-day MA of 48.95, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 67.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TAN.

TAN Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.61B0.70%
58
Neutral
$9.69B0.56%
64
Neutral
$8.08B0.75%
56
Neutral
$7.49B0.46%
59
Neutral
$4.86B0.40%
65
Neutral
$3.81B0.46%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TAN
Invesco Solar ETF
56.12
27.74
97.74%
GRID
First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index
ARKK
Ark Innovation Etf
GUNR
FlexShares Morningstar Global Upstream Natural Resources Index Fund
GNR
SPDR S&P Global Natural Resources ETF
XT
iShares Exponential Technologies ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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