Invesco Solar ETF (TAN): Complete Beginner's Guide
Last updated: March 2026 • Invesco • Solar Energy
Expense Ratio
0.67%
AUM
$1.5B
Dividend Yield
0.40%
Inception
2008
Beginner Score
7/10
What is Invesco Solar ETF?
TAN focuses specifically on companies in the solar energy industry, including manufacturers of solar panels, inverters, and installation firms. It provides concentrated exposure to one of the fastest-growing segments of the clean energy market. This fund suits investors who believe solar power will play a dominant role in the future global energy mix.
TAN is managed by Invesco and has been available since 2008. With $1.5B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.67%, which means for every $10,000 you invest, you pay approximately $67 per year in management fees.
TAN at a Glance — Key Metrics
| Expense Ratio | 0.67% |
| Total Holdings | 45 |
| P/E Ratio | 32.0 |
| Beta | 1.40 |
| Dividend Yield | 0.40% |
| AUM | $1.5B |
| Inception Year | 2008 |
| Issuer | Invesco |
Top 10 Holdings in TAN
TAN holds 45 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Enphase Energy Inc. | ENPH | 11.00% |
| 2 | First Solar Inc. | FSLR | 10.00% |
| 3 | SolarEdge Technologies | SEDG | 8.00% |
| 4 | Sunrun Inc. | RUN | 6.00% |
| 5 | Array Technologies | ARRY | 5.00% |
| 6 | Maxeon Solar Technologies | MAXN | 4.00% |
| 7 | Shoals Technologies | SHLS | 4.00% |
| 8 | Daqo New Energy | DQ | 4.00% |
| 9 | Canadian Solar Inc. | CSIQ | 4.00% |
| 10 | SunPower Corp. | SPWR | 3.00% |
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TAN Performance History
Here's how TAN has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
-8.00%
1 Year
-15.00%
3 Year
-20.00%
5 Year
2.00%
10 Year
5.00%
Beginner Suitability Score: 7/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
TAN scores 7/10 because it has very low fees, can be more volatile than the broader market, focuses on 45 selected holdings, and has been available since 2008, giving it a proven track record.
How to Buy TAN — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "TAN" — Use the search bar in your brokerage platform to find Invesco Solar ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into TAN
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With TAN's expense ratio of 0.67%, a $10,000 investment would lose approximately $5,455 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of TAN
Pros
- ✓Purest play on solar energy among all available ETFs
- ✓Solar costs continue declining which supports long-term industry growth
- ✓Government incentives like the Inflation Reduction Act boost the sector
- ✓Strong secular tailwinds as countries commit to renewable energy targets
Cons
- ✗Extremely concentrated in one sub-sector making it highly volatile
- ✗Heavily dependent on government subsidies and policy support for growth
- ✗Higher expense ratio than broader clean energy alternatives
TAN vs Similar ETFs
See how TAN stacks up against similar funds:
Frequently Asked Questions
Is TAN a good ETF for beginners?▾
TAN has a Beginner Suitability Score of 7/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of TAN?▾
TAN has an expense ratio of 0.67%. This means for every $10,000 you invest, you pay approximately $67 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in TAN?▾
You can invest in TAN with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does TAN pay dividends?▾
Yes, TAN pays dividends with a current yield of approximately 0.40%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in TAN?▾
The top holdings in TAN include Enphase Energy Inc. (11.00%), First Solar Inc. (10.00%), SolarEdge Technologies (8.00%), and more. The fund holds 45 total positions, providing focused exposure to selected companies.