TAN is a non-leveraged exchange traded fund that tracks the stocks of solar energy companies. It also invests, in addition to common stocks, in anticipation notes. It gives investors exposure and returns to solar energy. However, the return is very low. This fund is great for investors who are interested in building a solar energy portfolio.
TAN is a non-leveraged exchange traded fund
TAN is an exchange-traded fund that invests in global solar energy companies. The companies are selected according to their revenues from solar-related businesses. The fund also tracks companies that develop solar energy technology. Its strategy allows investors the opportunity to take advantage of the high-growth potential for solar energy.
The expense ratio for this fund is 0.35%. Its underlying index tracks the semiconductors segment of the broad-market S&P Total Market Index. Its top 5 holdings include Nvidia Corp. Lattice Semiconductor Corp. Qorvo Inc. und Monolithic Power Systems Inc.
It tracks an indicator of solar energy companies
An ETF that tracks an index for solar energy companies is the TAN ETF. This ETF is a great option for investors who want to have a concentrated exposure to solar power. It includes companies that make and install solar energy, as well companies that make parts for it. It also includes companies selling solar energy to utilities.
TAN is used to track the MAC Global Solar Energy Index. It invests mostly in solar-related companies that make more than 90% of its revenue from solar energy. Its constituents include 29 publicly listed companies. Its top holdings include First Solar Inc. (GT Advanced Technologies), GCL POLY Energy Holdings Ltd., Solar City Corp., and GCL POLY Energy Holdings Ltd. These companies together make up almost 60% of the fund's assets.
It invests on anticipation notes
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 have fixed maturities, and are often exempt from taxes. The government can also use these securities proceeds to finance a project such as the construction of a new park. Broome County in New York may require $5 million to create a park. The city has $2million of cash available so it might decide to issue anticipation note. These notes would mature by May 2023.
An anticipation note is a short term debt instrument that promises regular payments in interest and principal. These payments will come from a particular revenue source in the future, such tax revenues. This allows the government not to wait for cash to fund its public projects. In addition, interest costs are much lower than other sources of financing.
It has a low return on investment
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 want to increase capital appreciation, this fund might be worth looking into. TAN has outperformed its competitors, beating both the SPDR S&P500 Trust ETF and Global X Renewable Energy Producers ETF. TAN's market capitalization has increased by over 250 percent during 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 extremely concentrated and excludes the vast majority of the larger renewable energy market. The TAN fund includes companies that focus on solar technology, equipment, or related services. These companies are called pure-plays, which means they see the solar industry and generate more revenue than two-thirds.
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 offer long-term growth potential. Additionally, they are more sustainable for the environment. The cost of alternative energy sources has held them back in the past but technological advances and economies-of-scale are changing this story.
TAN is a great investment if your target audience is a select few. It is however highly overvalued relative to its peers. It is trading at an absurd PE ratio which isn’t justified by the expected revenue growth through 2021. Additionally, three of the seven largest companies have financial problems. One example is that three of its largest companies have an Altman Z Score below 1.80. This suggests they could be bankrupt in future.