Should I buy Invesco Solar ETF stock in 2025? NZ Analysis

What is the Invesco Solar ETF?

How much is the Invesco Solar ETF stock?

The price of Invesco Solar ETF stock is rising this week. Currently trading at $31.93 USD, the ETF has gained 0.79% over the past 24 hours but is down 6.01% for the week.

The beta of 1.50 indicates above-average volatility.

Investors in New Zealand should note that while the sector offers strong long-term potential, recent short-term swings highlight the high sensitivity of solar stocks to global policy changes.

Our full analysis on the Invesco Solar ETF stock

After carefully reviewing Invesco Solar ETF’s latest financials, trailing three-year price performance, and leveraging a robust blend of quantitative indicators, technical signals, and cross-sector benchmarking derived from proprietary analysis, a compelling narrative is emerging. Our data-driven, holistic process highlights material shifts within the global solar sector—some overlooked by the broader market. So, why might Invesco Solar ETF (NYSEARCA:TAN) once again become a strategic entry point into the renewable energy sector for astute investors in 2025?

Recent Performance and Market Context

The Invesco Solar ETF closed at $31.93 USD on 30 May 2025, marking a modest 0.79% intraday gain despite substantial volatility in the previous months. While this may suggest tempered sentiment (-6.01% over one week and -32.92% over one year), the very sharp declines of 2023 and 2024 have created a valuation landscape that looks notably more attractive than at any point in recent memory. The ETF’s assets under management stand at $642.1 million, with a robust three-month average daily trading volume of 981,000 shares—a testament to its enduring relevance and accessibility for both institutional and individual investors.

Several noteworthy events have shaped recent performance. Notably, the Trump administration’s renewed focus on trade protectionism and energy policy has introduced uncertainty, especially with potential tariffs as high as 3,521% on Southeast Asian solar panel imports. In parallel, a bill that threatens key solar tax credits briefly sent TAN down 9% in a single day. Yet, such political headwinds have paradoxically amplified TAN’s appeal as a barometer for solar’s resilience: news of tariffs in April 2025 saw the ETF surge 4.5%, as market participants rotated towards U.S.-listed solar equities in expectation of market share gains for domestic holdings.

From a macroeconomic and sector perspective, the context for renewables remains strongly positive. Global energy demand continues to soar, and the strategic imperative for energy independence—heightened by geopolitical tensions—cements solar as a structural growth theme. The sector’s longer-term trajectory is underpinned by multibillion-dollar international investments, with more than $40 billion allocated to renewable tax credits in 2024 alone.

Technical Analysis

A granular look at technicals underscores promising signs of a potential bullish inflection. The ETF’s 14-day Relative Strength Index (RSI) is 49.61, a neutral reading that offers a clean slate for directional moves. More important, the MACD (12,26) reading of 0.95 now signals a medium-term buy—reflecting positive underlying momentum.

• Moving Averages:
• 50-day: $30.69 (Buy signal; price has crossed above mid-term support)
• 20-, 100-, 200-day: $32.18, $32.23, $35.22 (Sell signals; indicating overhead supply but also highlighting proximity to key reversal triggers)
• Support and Resistance:
• Strong technical support sits at $25.53 (52-week low)—a level repeatedly defended, suggesting substantial buying interest on dips.
• Immediate resistance at $33.81 may serve as a short-term catalyst should TAN break through, with longer-term resistance at $49.93 (52-week high) forming the target of a renewed rally.

Technically, the combination of a nascent upturn in the MACD, a neutral RSI, and proximity to critical support levels all point to a setup where risk–reward could soon tilt decisively in favor of buyers as sector sentiment recovers.

Fundamental Analysis

Despite headwinds, TAN’s fundamentals continue to justify renewed interest. With a price/earnings ratio (PER) of 18.50, the valuation now looks notably less stretched than during peak sector exuberance, especially relative to projected sector growth rates.

Portfolio Strengths:

• Top Holdings: The ETF’s top five holdings—First Solar (10.9%), Nextracker (10.1%), Enphase Energy (8.8%), GCL Technology (5.6%), Sunrun (4.9%)—represent the vanguard of global solar innovation, including leading panel manufacturers, smart inverter developers, and next-gen tracking systems.
• Geographic and Sectoral Diversification:
• Technology: 68.5%
• Utilities: 22.1%
• Industrials/Financials: 9.5%
• This blend increases resilience, mitigating reliance on any single market while capturing the full spectrum of solar’s value chain.
• Structural Growth Drivers:
• Leadership in R&D and intellectual property
• Efficient global supply chains
• Market share gains in key regions (Asia, Europe, North America)

Earnings and Expansion:

• The sector retains robust projected growth due to global decarbonisation drives and increasing cost competitiveness of solar over fossil fuels.
• Despite transient policy risks in the U.S., Chinese industrial reform and European demand are further broadening the investment opportunity set.
• Exceptional levels of cumulative sector investment—over $40 billion in 2024 alone—reaffirm the long-term trajectory.

Attractive Valuation:

• The current valuation around $31.93 represents a significant discount to the one-year target ($41.51, a +30% potential upside, based on historical mean reversion and forward multiples).
• The ETF’s yield, while modest at 0.58%, provides an additional defensive buffer, and the expense ratio of 0.71% remains competitive among thematic sector ETFs.

Volume and Liquidity

Sustained average daily trading volume near 1 million shares reflects strong market confidence and ensures tight bid–ask spreads, a notable advantage for both retail and institutional investors in New Zealand seeking efficient execution. The ETF’s considerable float and diversified underlying holdings promote a dynamic price discovery process and support the argument for potential multiple expansion as sentiment normalises.

Catalysts and Positive Outlook

Several forward-looking catalysts underscore the optimistic outlook:

• Structural energy demand: Global population growth and the electrification megatrend are propelling energy needs to unprecedented levels, making solar an unavoidable part of the solution.
• Favourable regulatory trends: While the U.S. faces short-term turbulence, other major markets—most notably China and the EU—continue to ramp subsidies and solar commitments, fostering a robust backdrop for sector earnings.
• Innovation and ESG appeal: Holdings in TAN are at the forefront of next-generation solar technologies, offering exposure to advances in efficiency, battery integration, and grid resilience—core drivers of long-term value creation.
• Potential U.S. policy reversal: Any softening or reversal of recent protectionist and anti-renewable measures (with possible electoral regime change) could unleash substantial pent-up demand.
• Geographic expansion: Aggressive moves by portfolio companies into global growth markets offer enhanced diversification and insulation from idiosyncratic regulatory risk.

Investment Strategies

Whether for short-, medium-, or long-term positioning, TAN appears to offer an unusual confluence of attractive technical and fundamental tailwinds:

• Short-term:
• Rebounding from technical support, positive MACD crossover, and the neutral RSI suggest the ETF may be poised for a tactical upward swing, particularly on any positive policy surprises or sector upgrades.
• Medium-term:
• As the sector absorbs and re-prices immediate regulatory headwinds, normalization of sentiment and mean reversion to the $40+ level look increasingly plausible—aided by stabilizing earnings, ongoing cost improvements, and new product launches.
• Long-term:
• The structural allocation case remains especially strong. Demand for solar exposure—driven by the global push for decarbonization, improving economics, and rising ESG mandates—supports the logic of accumulating a position at a cyclical low.
• For NZ investors seeking to diversify portfolios internationally or align with sustainable growth, TAN provides an established, liquid, and cost-effective vehicle.

For those attuned to market cycles, the current setup may thus represent an ideal entry ahead of major catalysts, be they earnings upswings, regulatory improvements, or renewed enthusiasm for renewables globally.

Is it the right time to buy Invesco Solar ETF?

In summary, Invesco Solar ETF stands out as an instrument that combines sector-leading innovation, global diversification, a solid balance of liquidity and volatility, and now, more compelling technical and valuation dynamics than seen at any time since the last market peak. While political risk warrants monitoring, the fortitude of the ETF’s underlying holdings, enormous sector investment flows, and the intensifying global imperative for renewable energy collectively set the stage for a potentially strong rebound. For NZ-based investors exploring high-conviction opportunities within the global energy transition, TAN seems to represent an excellent opportunity at today’s prices, its fundamentals and macro tailwinds justifying renewed interest as 2025 unfolds.

For those guided by rigorous analysis, Invesco Solar ETF looks to be entering a new bullish phase—one that is difficult to ignore at these levels, especially for those with a long-term outlook aligned with the clean energy megatrend. Now may be the moment to consider the advantages TAN can bring to a well-balanced, future-focused portfolio.

How to buy Invesco Solar ETF stock in New Zealand?

Buying Invesco Solar ETF (TAN) stock online is a straightforward and secure process for New Zealand investors, thanks to regulated online brokers. You can opt for spot buying—purchasing the ETF outright and holding it in your portfolio—or trade Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage. Each method has its own advantages and risk profile. Below, you'll find an explanation of both approaches, as well as a broker comparison tool further down the page to help you choose the best platform for your needs.

Spot Buying

A cash (or spot) purchase of Invesco Solar ETF means you buy the actual shares at the market price and hold them in your investment account. This is a common approach for long-term investors who want direct ownership and exposure to this fast-growing thematic ETF. In New Zealand, most online brokers charge a fixed commission per order, typically ranging from NZ$4 to NZ$10 per trade, depending on the broker and whether the trade is on a US exchange.

Example

If the Invesco Solar ETF share price is US$31.93, with NZD/USD currently at 0.61, each share costs roughly NZ$52.35. With a NZ$1,000 stake, you can buy around 19 shares (NZ$995.70), factoring in a broker fee of NZ$5.

• Gain scenario: If the share price rises by 10%, your holding is now valued at NZ$1,100 (before fees and currency fluctuation).
  Result: +NZ$100 gross gain, which is +10% on your original investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on the price movement of Invesco Solar ETF without owning the shares directly. CFDs are offered by regulated brokers and allow you to use leverage—amplifying both potential gains and risks. Main costs include the spread (the difference between buy/sell price) and an overnight financing fee if you hold your position longer than one trading day.

Example

You open a CFD position on Invesco Solar ETF with a NZ$1,000 deposit and 5x leverage, giving you market exposure of NZ$5,000. If TAN rises by 8% during your holding period:

• Gain scenario: Your position increases by 8% × 5 = 40%.
  Result: +NZ$400 gain on your initial NZ$1,000 (excluding fees and currency movement).

Final Advice

Before investing, it’s essential to compare the fees, market access, and conditions offered by each broker. Some platforms may suit long-term investors best, while others cater to active traders. Your choice should align with your investment strategy and risk appetite. You can find a comprehensive broker comparison tool further down the page to help you select the platform that fits your goals. Investing in ETFs like Invesco Solar is not only accessible, but can also be tailored to your financial objectives—whether you prefer direct ownership or leveraged exposure via CFDs.

Our 7 tips for buying Invesco Solar ETF stock

The latest news about the Invesco Solar ETF

The Invesco Solar ETF (TAN) has shown technical buy signals amid generally negative medium-term market sentiment. In the last week, while the ETF experienced a decline of 6.01%, technical indicators provide nuanced signals: the MACD now suggests a buy opportunity, and the 50-day moving average also flashes a positive signal. Meanwhile, the RSI remains neutral and most longer-term moving averages point to a downward trend, reflecting the sector’s continued volatility. This technical divergence may present specific tactical opportunities for professional investors closely monitoring momentum shifts, including those allocating capital from New Zealand into global renewable energy products.

Global investment in solar energy remains robust, with over USD 40 billion in renewable energy tax credits committed in 2024. Despite challenging policy shifts in the United States, such as those impacting the Invesco Solar ETF’s largest positions, the solar sector continues to experience strong capital inflows across Asian, European, and North American markets. This underpins long-term optimism about solar energy’s growth trajectory and supports the ETF’s diversified holdings strategy. New Zealand-based analysts and investors can find reassurance in the resilience and ongoing international expansion of solar assets, an energy domain aligned with both national climate goals and local investment demand for sustainable opportunities.

Short-term performance has been pressured by major policy risks in the United States, but recent sector resilience offers constructive context. The adoption by the US House of Representatives of a bill potentially curtailing key solar tax credits led to a sharp single-day drop of 9% for TAN, while the imposition of hefty tariffs (up to 3,521%) on Asian solar imports by the Trump administration further aggravated short-term uncertainty. However, in a potentially positive signal, selective tariff news drove a 4.5% gain for TAN in April, focusing attention on the competitive strengths of US solar manufacturers—several of which are among TAN’s top holdings—benefitting indirectly from protectionist measures.

Global diversification and technological leadership among TAN’s portfolio companies continue to bolster the ETF’s long-term value proposition. More than 68% of TAN’s assets are allocated to technology-focused solar enterprises with a substantial presence in innovation and new market segments worldwide. This geographic and sector diversification means the ETF is not overly reliant on any single market or regulatory regime, a factor especially relevant to New Zealand investors seeking to mitigate political and sector-specific risk while participating in global energy transitions.

The Invesco Solar ETF remains directly accessible to NZ investors, trading on US exchanges and adhering to standard US ETF tax treatment. New Zealand residents can access TAN via cross-border brokerage platforms, benefitting from its liquidity (with an average daily volume near one million shares), cost efficiency (expense ratio of 0.71%), and its track record as a sector leader. Although TAN’s dividend yield remains modest at 0.58%, the ETF’s prospects are supported by positive global drivers and continuing demand for decarbonization solutions—an ongoing area of strategic interest across the Australasian institutional investor community.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.