Invesco Solar ETF (TAN)

Data centres need power, including solar which is seeing a capex cycle accelerating. AI's bottleneck is power. MER of 0.7%. TAN is volatile given interest rates and government policy.

Down 27% since late June. Hurt by rising interest rates. Solar panels are discretionary, another headwind.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The fund is down 19%YTD but more decline was expected initially. A high beta sector. Growth looks good still and it is trading below its moving averages. Support is around $60, which it bounced off of. Sector outlook remains good. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A solar energy ETF. It charges a reasonable management fee for a specialty fund at 0.70% and holds $2B of assets. Sector outlook is positive for the long term. Unlock Premium - Try 5i Free

He is long this one. He is long the solar industry. Whatever policy is coming out in the world, what we have seen is that alternative energy has continued its march higher. It is a reasonably good entry point, but it will be quite volatile.

This is a theme that has been resonating quite strongly recently with many investors. He considers many of these sector ETF’s as kind of tactical plays for short-term views. Because it is such a niche product, it really only applies if you have a strong view of the solar industry. It holds a lot of Chinese technology companies. China is still very much at the centre of global volatility, and this may pull you in directions that you may not want to go.