TAN vs. ICLN

Last updated Jun 14, 2026

TAN (Invesco Solar ETF) and ICLN (iShares Global Clean Energy ETF) are both Alternative Energy Equities funds - TAN tracks the MAC Global Solar Energy Index while ICLN tracks the S&P Global Clean Energy Index. Both are passively managed. Over the past 10 years, TAN returned 13.06%/yr vs 11.67%/yr for ICLN. Their correlation of 0.85 suggests significant overlap in exposure. TAN charges 0.69%/yr vs 0.39%/yr for ICLN.

Performance

TAN vs. ICLN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Solar ETF (TAN) and iShares Global Clean Energy ETF (ICLN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with TAN having a 28.32% return and ICLN slightly lower at 27.33%. Over the past 10 years, TAN has outperformed ICLN with an annualized return of 13.06%, while ICLN has yielded a comparatively lower 11.67% annualized return.

TAN

• 1D: 1.17%
• 1M: -2.96%
• YTD: 28.32%
• 6M: 31.75%
• 1Y: 80.24%
• 3Y*: -4.29%
• 5Y*: -4.50%
• 10Y*: 13.06%

ICLN

• 1D: 0.87%
• 1M: -5.47%
• YTD: 27.33%
• 6M: 27.01%
• 1Y: 60.20%
• 3Y*: 5.25%
• 5Y*: -0.21%
• 10Y*: 11.67%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TAN vs. ICLN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TAN Invesco Solar ETF	28.32%	48.31%	-37.61%	-26.79%	-5.24%	-25.10%	233.96%	66.53%	-25.67%	54.38%
ICLN iShares Global Clean Energy ETF	27.33%	47.05%	-25.72%	-20.41%	-5.43%	-24.18%	141.82%	44.36%	-9.03%	21.47%

Correlation

The correlation between TAN and ICLN is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Jun 25, 2008	0.85

The correlation between TAN and ICLN has been stable across timeframes, ranging from 0.85 to 0.91 - a consistent structural relationship.

TAN vs. ICLN - Sectors Allocation Comparison

Sectors	TAN	ICLN
Technology	65.1%	10.8%
Energy	57.3%	24.9%
Utilities	29.2%	35.4%
Financial Services	3.5%	-
Industrials	2.3%	26.2%
Basic Materials	-	1.3%
Communication Services	-	-
Consumer Cyclical	-	0.1%
Consumer Defensive	-	-
Healthcare	-	-
Real Estate	-	-

Return for Risk

TAN vs. ICLN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TAN

TAN Risk / Return Rank: 76
TAN Sharpe Ratio Rank: 78
TAN Sortino Ratio Rank: 71
TAN Omega Ratio Rank: 65
TAN Calmar Ratio Rank: 86
TAN Martin Ratio Rank: 81

ICLN

ICLN Risk / Return Rank: 75
ICLN Sharpe Ratio Rank: 78
ICLN Sortino Ratio Rank: 70
ICLN Omega Ratio Rank: 67
ICLN Calmar Ratio Rank: 81
ICLN Martin Ratio Rank: 81

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TAN vs. ICLN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Solar ETF (TAN) and iShares Global Clean Energy ETF (ICLN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TAN	ICLN	Difference
Sharpe ratio: Return per unit of total volatility	2.17	2.17	0.00
Sortino ratio: Return per unit of downside risk	2.75	2.73	+0.02
Omega ratio: Gain probability vs. loss probability	1.34	1.34	-0.01
Calmar ratio: Return relative to maximum drawdown	4.23	3.73	+0.50
Martin ratio: Return relative to average drawdown	13.77	13.84	-0.08

TAN vs. ICLN - Sharpe Ratio Comparison

The current TAN Sharpe Ratio is 2.17, which is comparable to the ICLN Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of TAN and ICLN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TAN vs. ICLN - Drawdown Comparison

The maximum TAN drawdown since its inception was -95.29%, which is greater than ICLN's maximum drawdown of -87.15%. Use the drawdown chart below to compare losses from any high point for TAN and ICLN.

Drawdown Indicators

	TAN	ICLN	Difference
Max Drawdown Largest peak-to-trough decline	-95.29%	-87.15%	-8.14%
Max Drawdown (1Y) Largest decline over 1 year	-19.98%	-16.38%	-3.60%
Max Drawdown (3Y) Largest decline over 3 years	-64.40%	-43.18%	-21.22%
Max Drawdown (5Y) Largest decline over 5 years	-73.95%	-57.16%	-16.79%
Max Drawdown (10Y) Largest decline over 10 years	-78.53%	-66.75%	-11.78%
Current Drawdown Current decline from peak	-71.05%	-43.03%	-28.02%
Average Drawdown Average peak-to-trough decline	-78.48%	-66.56%	-11.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.13%	4.41%	+1.72%

Volatility

TAN vs. ICLN - Volatility Comparison

Invesco Solar ETF (TAN) has a higher volatility of 16.32% compared to iShares Global Clean Energy ETF (ICLN) at 12.97%. This indicates that TAN's price experiences larger fluctuations and is considered to be riskier than ICLN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAN	ICLN	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.32%	12.97%	+3.35%
Volatility (6M) Calculated over the trailing 6-month period	28.02%	22.62%	+5.40%
Volatility (1Y) Calculated over the trailing 1-year period	39.00%	28.21%	+10.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	40.04%	27.55%	+12.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.11%	27.32%	+10.79%

TAN vs. ICLN - Expense Ratio Comparison

TAN has a 0.69% expense ratio, which is higher than ICLN's 0.39% expense ratio.

Dividends

TAN vs. ICLN - Dividend Comparison

TAN has not paid dividends to shareholders, while ICLN's dividend yield for the trailing twelve months is around 1.28%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ICLN iShares Global Clean Energy ETF	1.28%	1.63%	1.85%	1.59%	0.89%	1.18%	0.34%	1.36%	2.77%	2.49%	3.88%	2.36%
TAN Invesco Solar ETF	0.00%	0.00%	0.50%	0.09%	0.00%	0.00%	0.09%	0.30%	0.69%	1.77%	5.04%	1.60%

Frequently Asked Questions

Can I hold both TAN and ICLN in my portfolio?

TAN and ICLN have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAN or ICLN?

TAN has higher volatility (16.32%) compared to ICLN (12.97%). In terms of maximum drawdown, TAN dropped -95.29% vs ICLN's -87.15%.

Which ETF is better, TAN or ICLN?

On 10-year performance, TAN leads with 13.06% vs 11.67% for ICLN. On fees, ICLN is cheaper at 0.39% per year. On volatility, ICLN has been the lower-risk option at 12.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TAN or ICLN?

Over the 10-year period, TAN has performed better with a 13.06% return vs 11.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TAN or ICLN?

ICLN is cheaper with a 0.39% expense ratio, compared with 0.69% for TAN.

Which ETF pays a higher dividend yield, TAN or ICLN?

ICLN has the higher dividend yield at 1.28%, compared with 0.00% for TAN.

What is the main difference between TAN and ICLN?

TAN tracks MAC Global Solar Energy Index, while ICLN tracks S&P Global Clean Energy Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.69% for TAN and 0.39% for ICLN.

Which has better risk-adjusted returns?

TAN currently has the higher Sharpe Ratio (2.17 vs 2.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.