TAN is a non-leveraged, exchange traded fund that tracks stocks of solar energy companies. It invests in anticipation bonds and common stocks. It offers investors exposure to solar power, but at very low rates of return. This fund is ideal for investors who wish to build a portfolio in solar energy.
TAN is an un-leveraged exchange traded funds
TAN is an ex-traded fund that invests globally in solar energy companies. Selection of companies is based on the amount of revenue they generate from solar-related business. In addition, the fund tracks companies that are involved in the development of solar energy technologies. Its strategy makes it possible for investors to reap the high-growth potential solar energy.
The fund charges a cost ratio of 0.35%. The fund's index underlying tracks the broad-market S&P Total Market Index semiconductors. Its top five holdings consist of Nvidia Corp. Lattice Semiconductor Corp. Qorvo Inc., Monolithic Power Systems Inc.
It tracks an Index of Solar Energy Companies
ETF TAN ETF tracks an index that includes solar energy companies. It is an excellent option for investors seeking a focused exposure to solar power. Its selection universe includes companies that produce and install solar power, as well as companies that produce parts for solar power equipment. It also includes companies which market solar energy in utilities.
TAN is designed to track the MAC Global Solar Energy Index. It invests primarily in solar-related companies, which generate more than 90% of their revenue from solar power. Its constituents include 29 publicly listed companies. The fund's top holdings are First Solar Inc. GT Advanced Technologies and GCL POLY Energy Holdings Ltd. Together, these companies account for nearly 60% of the fund’s assets.
It invests in anticipation bonds
If you're interested in a safe, low-risk investment that yields a low rate of return, you should consider investing in anticipation notes. These securities are generally exempted from tax because they have fixed maturities. These securities have fixed maturities and are usually exempt from tax. Additionally, the government could use the proceeds of these securities for funding a specific project like the development of a public park. Broome County in New York may require $5 million to create a park. It may decide to issue anticipation bills if it has $2 million of cash. These notes would mature in May 2023.
An anticipation bond is a short-term loan instrument that promises regular payments, principal and interest. These payments will be made in the future from a specific revenue source, such as tax revenues. This allows for the government to proceed with public projects while not waiting for cash. In addition, interest costs are much lower than other sources of financing.
It offers a low return rate
TAN continues to be one of the most successful ETFs despite its low rate of return. This fund has outperformed all other ETFs since June 2013, according to the investor guide. If you're looking for capital appreciation, this fund may be worth your consideration. TAN also outperforms the competition. It has beaten both SPDR S&P500 Trust ETFs and Global X Renewable Energy Producers ETF. TAN's market value has increased by more than 250% in the first half 2015
If you are looking for exposure to solar energy, however, the TAN ETF may be a better choice. The TAN ETF is very concentrated and excludes most of the wider renewable energy market. The TAN selection universe includes companies that are experts in solar technology, equipment, and related services. These companies are called "pureplays" and consider the solar sector their primary business.
It's a smart investment for a small group of people.
The TAN ETF is a fund that focuses on solar and wind energy companies. These technologies can grow over the long term. These technologies are also more beneficial for the environment. Although alternative energy sources were expensive in the past, technology advances and economies are changing the narrative.
TAN can be a worthwhile investment if it is chosen. It is still highly valued compared to its peers. Its absurd PE ratio is not justified by its expected revenue growth up to 2021. Additionally, three of the seven largest companies have financial problems. Three of the largest companies in the group have Altman Z scores below 1.80. This indicates that they may go bankrupt.