Invesco Solar ETF

TAN

Market cap $1.51B

Tariffs are pinching margins, federal energy policies are a drag, and demand looks weaker than expected.

Invesco Solar ETF maintains a buy rating, supported by strong momentum and an attractive valuation profile. TAN trades at a 19.3x P/E and a PEG ratio of 1.22x, with a long-term EPS growth rate of 15.8%. The ETF's technical setup is bullish, with a breakout above resistance, rising 200 dma, and next resistance targeted near $67.

The Invesco Solar ETF is the IBD Stock Of The Day for Thursday as shares surge to the top of a buy zone.

2026 could favor SPY, SLV, KBWB, TAN & global ETFs as AI, metals, banks and clean energy shape the next leg of market gains.

The Invesco Solar ETF offers focused exposure to the solar sector, with key holdings in Nextracker and First Solar. Favorable macro conditions - stable rates, robust corporate PPAs, and IRA incentives - have shifted solar from speculative to structural infrastructure. TAN's diversified portfolio reduces single-stock risk, making it a compelling choice for retail investors over individual solar stocks.

Solar and other clean energy ETFs like TAN, CTEX, CNRG & CTEC are surging as AI demand, rate cuts & policy relief boost the long-term growth outlook.

Chinese solar stocks soared on Tuesday as state media reported that authorities were planning to strengthen controls on solar production capacity, as the industry faces a glut of supply that has driven prices unsustainably low.

Shares in Japanese renewable energy company Renova plunged more than 11% on Monday, making it the biggest loser on the Tokyo Stock Exchange's prime market, after Sanae Takaichi looked set to become Japan's next prime minister.

Trump's sharp criticism of green energy rattles investors, sending U.S. clean energy ETFs like ICLN, QCLN, ACES, TAN and PBW lower.

Less unfavorable regulations, strong Q2 earnings beats and higher demand for energy due to the AI boom put focus on solar ETFs like TAN.