TAN — Invesco Solar ETF

Overview

The Invesco Solar ETF, trading under the ticker TAN, is a Thematic fund issued by Invesco with $1.72 billion in assets under management. Currently priced at $54.14, the fund holds an overall rank of #116 out of 120 tracked ETFs across all categories and has received an ETFValuer grade of D with a score of 45.2 out of 100. Investors face an expense ratio of 0.7% while the fund offers a dividend yield of 0.00%. The fund operates within a category containing 5 ETFs tracked by ETFValuer. The combination of a low dividend yield and a relatively high expense ratio suggests a focus on capital appreciation rather than income generation. The asset size of $1.72 billion indicates significant investor adoption despite the fund's lower overall ranking. This positioning places the fund among the larger thematic vehicles, even as its D grade reflects challenges relative to the broader universe of 120 tracked funds.

Recent performance data shows a sharp decline over the last day with a return of -1.22% and a further drop of -8.47% over the past week. The one-month return extends this negative trend to -15.47%, contrasting with a modest recovery in the three-month period where returns turned positive at +1.25%. Over the six-month horizon, the fund posted a gain of +5.91%, and year-to-date returns stand at +4.92%. The one-year return demonstrates strong momentum with a +40.44% increase, which is notably higher than the three-year annualized return of -24.49%. This pattern indicates a significant divergence between short-term volatility and the strong one-year performance, while the three-year figure suggests a longer-term period of underperformance. The trajectory shows a transition from recent losses to a substantial annual gain, though the multi-year average remains negative.

The fund carries a volatility label of Very High and a beta of 1.85, indicating that its price movements are significantly more sensitive to market fluctuations than the broader market. A Sharpe ratio of 0.93 suggests that the return generated per unit of risk taken is moderate relative to the high volatility observed. The maximum drawdown of -64.40% highlights the severe potential for capital loss during market downturns. This combination of a very high beta and a deep maximum drawdown implies that the fund experiences amplified swings in both up and down markets. While the Sharpe ratio indicates some compensation for the risk, the extreme drawdown figure underscores the substantial downside exposure inherent in the fund's structure. Investors should expect significant price instability given the interplay between the high beta and the recorded maximum drawdown.

AI-generated summary based on the data on this page.

TAN Top Holdings

Holdings as of 2026-02-28 per the fund's most recent SEC N-PORT-P filing.

Market Backdrop

10-Year Treasury Yield: 4.55% (as of 2026-07-07) — The yield on 10-year US Treasury bonds — the standard "risk-free rate" benchmark used to contextualize this fund’s Sharpe ratio and returns.

CBOE Volatility Index (VIX): 16.13 (as of 2026-07-07) — A real-time gauge of expected S&P 500 volatility over the next 30 days — useful context for this fund’s own volatility label.

Federal Funds Rate: 3.63% (as of 2026-06-01) — The Federal Reserve’s target policy rate, which anchors short-term borrowing costs across the economy.

TAN Performance History

How TAN Compares to Other Thematic ETFs