The clean energy investment market has been growing in 2020, thanks to breakout performance of some key stocks. While these stocks may no longer appeal to bargain-minded alternative investors, some of the top ETFs present a compelling alternative.
The Invesco Solar ETF (NYSE ARCA: TAN) is one such option. Although bargain investors usually limit their picks to stocks that cost $10 or less, this Solar ETF presents a compelling alternative, despite trading at $38 in the pre-market today.
Investors should see the fund as a stake in all of the best solar companies in one easy to manage package. Its biggest components include EnPhase Energy, SolarEdge Technologies, First Solar, SunRun, and Scatec Solar. These are considered to be some of the strongest stocks in the solar industry and have produced solid returns over the last year.
While this Solar ETF costs more than a typical bargain investment, it has all of the elements of the best picks. It is connected to a growing industry and has produced strong growth in the last year. In 52 weeks, the price has ranged from $22.73 to $41.86. On top of this, it produces a small dividend yield of 0.24%.
This is an Solar ETF for investors who want some exposure to the more expensive solar energy picks, without having to buy the individual stocks at a premium. With continued growth in clean energy, it’s worth taking a closer look in 2020.
- Net Expense Ratio: 7%
- Turnover Percentage: 29%
- Dividend Yield: 24%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.