Despite declining in February, Invesco’s clean energy ETFs are outpacing broad U.S. indexes year to date.
Invesco’s broad clean energy fund, the Invesco WilderHill Clean Energy ETF (PBW), has gained 6.47% since year to date as of March 9, while the Invesco Solar ETF (TAN) has increased 5.59%. Meanwhile, the S&P 500 is up 2.40% during the same period.
For the last several months, TAN has held its spot on the top of VettaFi’s list of the 100 Highest 5-Year ETF Returns. The clean energy fund has returned 212.94% over a five-year period ending March 9, the highest five-year return out of all ETFs.
As of March 9, PBW offers exposure to 75 companies that are engaged in the business of advancing cleaner energy and conservation. Current holdings include Navitas Semiconductor Corporation (NVTS), TPI Composites Inc. (TPIC), First Solar Inc (FSLR), QuantumScape Corporation Class A (QS), and EVgo Inc. Class A (EVGO).
TAN delivers targeted exposure to companies in the solar energy industry. The fund includes 47 securities as of March 9, including First Solar Inc. (FSLR), Enphase Energy Inc. (ENPH), SolarEdge Technologies Inc. (SEDG), GCL Technology Holdings Limited (3800), and Sunrun Inc. (RUN).
Companies eligible for inclusion in TAN’s underlying index include solar power equipment producers, including ancillary or enabling products such as tracking systems, inverters, batteries, or other solar energy storage systems; suppliers of raw materials, components, or services to solar producers of developers; companies that produce solar equipment fabrication systems; companies involved in solar power system installation, development, integration, maintenance, or finance; companies that produce hydrogen using solar energy; companies that produce solar-powered charging systems for electric vehicles or other electrical devices; companies selling systems that use solar thermal energy to produce heat or electricity; and companies that sell electricity that derives from solar power, according to the regulatory filings.
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