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Invesco Solar ETF (TAN) Sharpe Ratio: 1.91

ETF · Currency in USD · Last updated Jun 26, 2026

The Invesco Solar ETF (TAN) seeks to track the MAC Global Solar Energy Index, providing exposure to companies across the solar power value chain, including solar equipment producers, installers, project developers, and utilities with significant solar operations. The fund offers concentrated thematic exposure to the global solar industry and launched in April 2008.

TAN's Sharpe Ratio of 1.91 indicates that for each unit of volatility, it generates 1.91 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 26, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

TAN Sharpe Ratio Rank

TAN Sharpe Ratio Rank: 68.869
Above Average

TAN ranks above 68.8% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating above-average returns relative to volatility. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Above-average risk-adjusted returns with room for improvement
  • Compare against category peers to gauge relative positioning
  • Monitor for movement toward top tier or decline toward median
  • Consider pairing with top-tier holdings to improve portfolio efficiency

TAN Sharpe Ratio Market Positioning

The chart shows TAN's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.86 or lower
  • Yellow zone (middle 50%): 0.86 to 2.12
  • Green zone (top 25%): 2.12 or higher
  • Top 1%: 6.84+
  • Median: 1.56 — half of all investments score higher

How it compares to other similar ETFs

The table compares Invesco Solar ETF's Sharpe Ratio with other ETFs in the Alternative Energy Equities category across multiple time periods, showing how TAN's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 26, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
IBATiShares Energy Storage & Materials ETF3.83
HYDRGlobal X Hydrogen ETF2.55
CTEXProShares S&P Kensho Cleantech ETF2.50
CNRGSPDR S&P Kensho Clean Power ETF2.41
QCLNFirst Trust NASDAQ Clean Edge Green Energy Index Fund2.37
PBDInvesco Global Clean Energy ETF2.37
PWERMacquarie Energy Transition ETF2.25
CTECGlobal X CleanTech ETF2.22
FRNWFidelity Clean Energy ETF2.21
ICLNiShares Global Clean Energy ETF2.08
TANInvesco Solar ETF1.91

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows TAN's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when TAN consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does TAN fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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