TAN is a tradeable exchange fund that tracks the stock of solar energy companies. It also invests, in addition to common stocks, in anticipation notes. As the name implies, it provides investors with exposure to solar energy, but at a very low rate of return. This fund is great for investors who are interested in building a solar energy portfolio.
TAN is an un-leveraged exchange traded funds
TAN, an exchange-traded investment fund, invests in global companies involved in solar energy. The companies are selected based on their revenue from solar related business. In addition, the fund tracks companies that are involved in the development of solar energy technologies. Its strategy allows investors the opportunity to take advantage of the high-growth potential for solar energy.
The fund's expense ratio is 0.3%. Its underlying Index tracks the semiconductors section of the broad-market S&P Total Market Index. Its top five holdings are Nvidia Corp. and Lattice Semiconductor Corp. Qorvo Inc. and Monolithic Power Systems Inc.
It tracks an index of solar energy companies
ETF TAN tracks an index of companies involved in solar energy. It is an excellent option for investors seeking a focused exposure to solar power. The selection universe includes companies which produce and/or install solar power. It also includes parts suppliers to solar power equipment. It also includes companies which market solar energy in utilities.
TAN tracks the MAC Global Solar Energy Index. It invests primarily on solar-related businesses that generate more solar power than 90%. Its constituents include 29 publicly traded companies. The fund's top holdings are First Solar Inc. GT Advanced Technologies and GCL POLY Energy Holdings Ltd. These companies collectively make up close to 60% of assets for the fund.
It invests in anticipation notes
Anticipation notes are a safe and low-risk investment option that can yield a low rate return. These securities have fixed maturities and are usually tax-exempt. The proceeds of these securities can be used by the government to fund a specific program, such as the creation of a new public parks. For example, let's say that Broome County, New York, needs $5 million to fund a new park for the city. The city has $2million in cash and may decide that it will issue anticipation notes. These notes would mature on May 20, 2023.
An anticipation note is a short-term debt instrument that promises regular payments of interest and principal. These payments will come from a particular revenue source in the future, such tax revenues. This allows government to continue with public projects, without having to wait for cash in the near future. In addition, the interest costs are low compared to other sources of financing.
It offers a low return rate
TAN is still one among the best-performing ETFs despite a low rate for return. According to its investor guide, this fund has outperformed the S&P 500 since its launch in June 2013. This is a good fund to consider if you are looking for capital appreciation. Moreover, TAN is currently outperforming its competition: it has beaten both the SPDR S&P 500 Trust ETF and Global X Renewable Energy Producers ETF. TAN's market value has increased by more than 250% in the first half 2015
The TAN ETF might not be the best option if you want to gain exposure to solar power. The TAN fund is highly concentrated and cuts out most of the broader renewable energy market. The TAN fund includes companies that focus on solar technology, equipment, or related services. These companies are known as "pure-plays", and they have more than two-thirds revenue.
It's a smart investment for a small group of people.
The TAN ETF focuses exclusively on renewable energy companies. These technologies offer long-term growth potential. They are also better for the environment. The costs of alternative energy sources held them back in past times, but technological advances are changing this narrative.
TAN may be a good choice if you are a few. It is however highly overvalued relative to its peers. It trades at an absurd PE ratio, which isn't justified by its expected revenue growth through 2021. Additionally, three of the seven largest companies have financial problems. The Altman Z score of three of its largest businesses is below 1.80. This means that they are at risk of going bankrupt.