Invesco Solar ETF (TAN): Complete Beginner's Guide

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

Top 10 Holdings in TAN

TAN holds 45 different securities. Here are the largest positions that make up the core of this fund:

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:

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

1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
3. Search for "TAN" — Use the search bar in your brokerage platform to find Invesco Solar ETF.
4. 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.
5. 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.

TAN Sector Allocation

Here's how TAN distributes its investments across different sectors of the economy:

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):

*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.

Pros and Cons of TAN

TAN vs Similar ETFs

See how TAN stacks up against similar funds:

Frequently Asked Questions