TAN Profile
Invesco Solar ETF is an exchange-traded fund dedicated to providing investors with exposure to the global solar energy sector. The fund primarily invests in securities that are part of its underlying index, aiming to track the performance of companies engaged in solar energy businesses worldwide. The ETF's investment strategy focuses on capturing the growth potential of the solar energy industry, which is positioned for significant expansion as global demand for renewable energy sources increases.
The fund allocates at least 90% of its total assets to the securities included in its underlying index. This index, managed and administered by S&P DJI Netherlands B.V. under the guidelines of MAC Indexing LLC, is a rules-based benchmark designed to reflect the performance of companies involved in various aspects of the solar energy sector. This includes solar panel manufacturers, solar energy system providers, and companies engaged in the development and deployment of solar technology.
The underlying index is constructed to track a diverse range of companies globally, focusing on those that are integral to the solar energy supply chain. By investing in this index, the fund provides targeted exposure to a sector that benefits from long-term trends toward sustainable energy and technological advancements in solar power. The index's rules-based approach ensures a systematic and transparent methodology for selecting and weighting companies based on their relevance and impact in the solar industry.
Managed by Invesco, the ETF leverages the firm's expertise in index-based investing and its commitment to capturing sector-specific opportunities. The Invesco Solar ETF is designed for investors seeking to gain exposure to the rapidly growing solar energy market, offering a way to invest in the transition to renewable energy while maintaining a focus on companies that are leading advancements in solar technology. As a non-diversified fund, it concentrates its investments in the solar energy sector, which may result in higher volatility compared to more broadly diversified funds.
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