Invesco Solar ETF

TAN

Market cap $788M

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.

Over the last 100 trading days, or roughly five months, the S&P 500 Index (SPX) has surged more than 25%.

TAN has outperformed the S&P 500 since April, with strong momentum and a technical breakout signaling further upside potential. Despite increased valuation, TAN's improved long-term EPS growth and compelling PEG ratio support a bullish investment thesis. The ETF remains under-owned, offering a contrarian opportunity, but carries high risk and seasonally weak performance from August to October.

Artificial intelligence is creating the first true energy bottleneck in the history of the digital economy. Hyperscale data centers are so compute and power hungry that the US grid is already straining to keep up.

Energy ETF serve as a strategic tool for capturing growth in specific sectors while reducing the risk associated with individual stocks. Let's take ETFs in the alternative energy sector (solar, wind, nuclear).

It may not have been on your investment bingo card, but one of the surprising outperforming investment themes this year has been clean energy. One catalyst has been the growing electricity demands related to the rise of AI.

The solar sector is taking a beating today, after President Donald Trump announced on Truth Social that the U.S. will not approve wind or solar projects, blaming the renewables for high electricity and energy costs.

States that rely on wind or solar power are seeing increased energy prices, the president posted on social media, calling it “the scam of the century.”