Invesco Solar ETF

TAN

Market cap $1.05B

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.

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.