The sun could very well keep shining on the Invesco Solar ETF (TAN) after U.S. president Biden unveiled his infrastructure plan on March 31. The push for renewable energy sources can continue to fuel TAN and other clean energy ETFs.

“President Joe Biden rolled out his infrastructure package called the American Jobs Plan on March 31 in Pittsburgh, Pennsylvania,” a Solar Power World article said. “The plan includes a large investment in re-energizing the country’s power infrastructure and boosting renewable energy development.”

“The plan aims to create a more resilient grid, lower energy bills for middle class Americans, improve air quality and public health outcomes, and create good jobs, with a choice to join a union, on the path to achieving 100% carbon-free electricity by 2035,” the article added.

As for the ETF

The TAN ETF is based on the MAC Global Solar Energy Index. The Fund will invest at least 90% of its total assets in the securities, American depositary receipts (ADRs), and global depositary receipts (GDRs) that comprise the Index.

Unsurprisingly, the Index is comprised of companies in the solar energy industry. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

TAN’s expense ratio comes in at 0.69%, but the fund itself is up over 260% the past 12 months. As such, the price per gains performance is difficult to beat.

TAN Chart

Energizing the Solar Power Jobs Sector

Solar power was once a nuanced energy source that was out of reach for most households. Nowadays, as the cost of materials to make solar power equipment falls, more and more homeowners are going with solar.

Biden’s plan can also energize the solar power jobs market.

““In line with the President’s emphasis on high-quality jobs, an upcoming jobs study will show that solar has a unionization rate of 10.3%, which is substantially more than previously estimated and higher than the economy-wide average,” the Solar Energy Industries Association said. “These union jobs, along with numerous other career-sustaining jobs in solar, offer another moment to prioritize equity and create opportunities in every community, regardless of zip code, including for fossil fuel workers who are looking to continue their careers in the energy sector.”

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