The Sun and Clean Energy: These are the two pointers you will get to help you find out about this pair of Invesco ETFs that have seen great returns in a pandemic-ridden year. Answer the Invesco Solar ETF (TAN) and the Invesco WilderHill Clean Energy ETF (PBW).
The pair topped a list of the top 10 ETFs that returned 100% or better in The Street article this year. They said the following about both funds:
“TAN is the first of three Invesco ETFs on the list, all of which focus on clean energy. This fund targets the solar energy space more closely and is up more than 170% since the start of the year. Interestingly, the TAN has still decreased by more than 50% since it was introduced in 2008. “
“Invesco has two of the three best places. PBW takes a broader approach than TAN and focuses on the entire clean energy industry. For 2020, it's up 162%. “
Founded in 2008, TAN seeks to track the investment results of the MAC Global Solar Energy Index, which aims to provide exposure to companies that are listed on stock exchanges in developed countries and that generate a significant portion of their revenues from the following business areas of Solar Industry: Manufacturers of solar power systems , including add-on or enabling products.
Big profits for clean energy
Based on the YTD chart in YCharts, TAN has already exceeded the 200% return and could have more leeway. A Joe Biden presidency that is conducive to clean energy initiatives could help fuel this fund even further.
TAN data from YCharts
PBW tries to track the investment results of the WilderHill Clean Energy Index. The Fund will typically invest at least 90% of its total assets in the securities that make up the underlying index.
The underlying index is composed of stocks of publicly traded companies in the United States that are engaged in the promotion of clean energy and conservation. Stocks will be included in the underlying index based on the index provider's assessment that such companies will benefit significantly from a societal transition to clean energy use and protection.
PBW's YTD chart also shows that the fund is breaking the 200% profit mark. Like TAN, the fund could continue to benefit from the profits of a Biden government that puts clean energy plans at the forefront of political policy.
PBW data from YCharts
So if you're looking to add a clean energy exposure to your portfolios for 2021, this pair of funds is well worth a look.
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