The sun and clean energy: those are the two hints you get to figure out this pair of ETFs from Invesco that have been providing stellar returns in a pandemic-riddled year. Answer: the Invesco Solar ETF (TAN) and the Invesco WilderHill Clean Energy ETF (PBW).
The pair topped a list of top 10 ETFs that have been providing 100% returns or better this year in The Street article. Here’s what they had to say about both funds:
“TAN is the first of three Invesco ETFs on the list, all focused on clean energy. This fund more narrowly targets the solar energy space and is up more than 170% year-to-date. Interestingly, TAN is still down more than 50% since its 2008 inception.”
“Invesco owns two of the top three spots. PBW takes a broader approach than TAN by focusing on the entire clean energy industry. It’s up 162% for 2020.”
TAN, which started back in 2008, seeks to track the investment results of the MAC Global Solar Energy Index, which is designed to provide exposure to companies listed on exchanges in developed markets that derive a significant amount of their revenues from the following business segments of the solar industry: solar power equipment producers including ancillary or enabling products.
Big Gains for Clean Energy
Based on its YTD chart in YCharts, TAN has already surpassed the 200% return mark and could have more room to run. A Joe Biden presidency that’s conducive to clean energy initiatives could propel this fund even further.
PBW seeks to track the investment results of the WilderHill Clean Energy Index. The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index.
The underlying index is composed of stocks of publicly-traded companies in the United States that are engaged in the business of the advancement of cleaner energy and conservation. Stocks are included in the underlying index based on the index provider’s evaluation that such companies will substantially benefit from a societal transition toward the use of cleaner energy and conservation.
PBW’s YTD chart also show shows the fund surpassing the 200% gain mark. Like TAN, the fund could also benefit further from gains with a Biden administration that puts clean energy plans in the forefront of political policies.
So if you’re looking to add clean energy exposure to your portfolios for 2021, this pair of funds is worth a look.
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