Invesco Solar ETF (TAN), one of the 2020 ETF superstars lost -4.64% on Monday as returns of this popular solar ETF continue to fade this year.
TAN is the largest solar ETF in the market with $2.96 billion in assets under management. Last year, TAN gained a staggering 232% as clean energy stocks trended during a pandemic induced market chaos and weak fossil fuel demand. However, the uptrend halted in early 2021 with TAN losing close to 25% year-to-date.
Profit taking amid multi-year highs, looming interest rate hike and surge in materials costs with the boom in commodity prices have weighed on the underlying holdings of TAN and eventually dragged down the fund. Its top holdings SolarEdge Technologies inc. (10.5%), Enphase Energy Inc. (10.17%) and Xinyi Solar Holdings Ltd (7.21%) lost -20%, -17% and 26% respectively.
TAN was not heading downhill solo this year, it was joined by other notable Clean Energy ETFs who lost steam this year such as iShares Global Clean Energy (ICLN), Invesco WilderHill Clean Energy ETF (PBW) and First Trust NASDAQ Clean Edge Green Energy Index Fund ETF (QCLN), which fell by -25%, -28% and -13% respectively.
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