TAN is a trading fund that tracks solar energy stocks and is not leveraged. Besides buying common stocks, it also invests in anticipation notes. It offers investors exposure to solar power, but at very low rates of return. This fund is great for investors who are interested in building a solar energy portfolio.
TAN, a non-leveraged exchange trade fund, is not leveraged
TAN, an exchange-traded investment fund, invests in global companies involved in solar energy. The selection of the companies is based primarily on their solar-related revenues. The fund also tracks companies involved in the development and commercialization of solar energy technologies. Its strategy makes it possible for investors to reap the high-growth potential solar energy.
The expense ratio for this fund is 0.35%. The fund's underlying index tracks semiconductors in the broad-market S&P Total Market Index. Its top five holdings include Nvidia Corp., Lattice Semiconductor Corp., Qorvo Inc., and Monolithic Power Systems Inc.
It tracks an Index of Solar Energy Companies
The TAN ETF is an ETF that tracks an index of solar energy companies. This ETF is a great option for investors who want to have a concentrated exposure to solar power. It includes companies that manufacture and install solar power as well as parts for solar power equipment. Additionally, it includes companies who market solar energy for utilities.
TAN tracks the MAC Global Solar Energy Index. It invests in companies that are solar-related and generate more than 90% of their revenues from solar power. Its 29 constituents are publicly traded companies. Its top holdings include First Solar Inc., GT Advanced Technologies, GCL POLY Energy Holdings Ltd., and Solar City Corp. These companies account for almost 60% of the fund’s assets.
It invests in anticipation bonds
Prediction notes can be a safe and low-risk option for investors looking to earn a low return. 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. 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 of cash available so it might decide to issue anticipation note. These notes would mature in May 2023.
An anticipation note is a short term debt instrument that promises regular payments in interest and principal. These payments will be made in the future from a specific revenue source, such as tax revenues. This allows the government not to wait for cash to fund its public projects. In addition, the interest costs are low compared to other sources of financing.
It has a low rate return
TAN is one of the top-performing ETFs, despite its low rate return. According to its investor guide, this fund has outperformed the S&P 500 since its launch in June 2013. This means that the fund is worth considering if your goal is capital appreciation. TAN currently outperforms its rivals: it beat both the SPDR S&P500 trust ETF, and Global X Renewable Energy Producers ETF. During the first half of 2015, TAN has increased its market value by more than 250 percent.
However, if you're looking to get exposure to solar power, the TAN ETF may not be the best choice for you. The TAN ETF's concentration is high and it excludes the majority of the wider renewable power market. The TAN fund includes companies that focus on solar technology, equipment, or related services. These companies are called "pure-plays" - they consider the solar industry as their primary business and generate more than two-thirds of their revenue.
This is a great investment for a few.
The TAN Fund ETF focuses only on companies that produce solar and wind power. These technologies are capable of long-term growth. These technologies are also more beneficial for the environment. The costs of alternative energy sources held them back in past times, but technological advances are changing this narrative.
TAN could be a good investment if you are one of the few. However, it is highly overvalued compared to its peers. It trades at an absurd PE ratio, which isn't justified by its expected revenue growth through 2021. Three out of seven companies are in poor financial health. Three of the largest companies in the group have Altman Z scores below 1.80. This indicates that they may go bankrupt.