The first pure-play solar power ETF has come to market in Europe amid a drawdown in clean energy valuations.
The Solar Energy UCITS ETF (TANN) will list on the London Stock Exchange in June with a total expense ratio (TER) of 0.69%.
Launched by white-label ETF issuer, HANetf, and tracking the EQM Global Solar Energy index, TANN is ESG screened and expected to be scheduled as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Solar capacity investment is expected to hit $4.2trn through 2050, with solar power currently the cheapest source of electricity in most countries and expected to be the largest source of power by 2042.
TANN’s underlying index, EQM, targets companies deriving significant revenue from manufacturing solar components as well as those involved in solar power generation, installation and power storage.
The index achieved back-tested returns of 211.32% over the last twelve months, according to HANetf.
Jane Edmondson, principal of EQM Indexes, said: “Solar energy is both the cheapest new source of electricity in most countries and the fastest-growing source of new energy capacity.
“TANN is the first pure-play solar energy ETF in Europe, offering targeted exposure to this important clean energy theme.”
TANN’s arrival follows the launch of the Invesco Global Clean Energy UCITS ETF (GCLE) in March. GCLE mirrors an equivalent Invesco product in the US and offers exposure to a basket of more generalised clean energy equities.