The launch of Europe’s first Solar Energy UCITS ETF on the HANetf platform will deliver pure-play exposure to the rapidly growing global solar industry as it builds to be the largest source of global energy capacity. The Solar Energy UCITS ETF (LSE ticker: TANN) will list on London Stock Exchange in June and will be passported for sale across Europe.
Solar energy is the fastest-growing source of new energy capacity with forecasts for USD4.2 trillion of new solar capacity investment through 2050. According to the Solar Energy Industries Association, solar energy is now the cheapest new source of electricity in most major countries, and as costs continue to decline, solar operations will undercut coal and fossil-fuel based power generation.
The Solar Energy ETF will track the EQM Global Solar Energy Index (SOLARNTR) which is focused on companies that derive significant revenue from solar energy-related business operations including manufacturing of photovoltaic, solar cells, and systems; producers of solar power generation, equipment, and components; providers of solar power system installation, development, and financing; and/or manufacturing of solar-powered charging and energy storage systems. Top 10 holdings in the Index include Motech Industries, TSEC Corp, DAQO New Energy Corp, Meyer Burger Technology and United Renewable Energy Co Ltd. The ETF will have a Total Expense Ratio of 0.69 per cent.
The SOLARNTR index back-tested performance shows it achieved 211.32 per cent returns in the past 12 months. Past performance is no guarantee of future results. When you trade ETFs your capital is at risk.
Focusing on solar energy offers a different opportunity set from just targeting clean energy and potentially stronger returns. Companies are screened for compliance with UN Global Compact Principles plus operational business involvement in the fields of oil sands, fossil fuel or controversial weapons.
The Solar Energy ETF — TANN is expected to be scheduled as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Jane Edmondson, Principal of EQM Indexes, says: “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. It has been classed as an article 8 investment under the Sustainable Finance Disclosure Regulation which demonstrates its environmental characteristics.”
“The launch further expands our partnership with HANetf following the benchmark we developed for the Global Online Retail UCITS ETF ‘IBUY’, tracking the shift from ‘bricks to clicks’. HANetf provides a unique platform for companies such as us and we look forward to the next listing.”
Hector McNeil, co-Founder and co-CEO at HANetf, says: “The global solar energy investment opportunity is very exciting for investors and enables them to focus on a global megatrend in the switch away from dirty energy to clean energy.
“The Solar Energy UCITS ETF ‘TANN’ provides a more focused opportunity than simply looking at clean energy and is the first pure-play exposure to the global solar energy industry and its growth prospects distinct from the wider clean energy investment universe which takes in more companies and different technologies. It not only expands our offering in the thematic space but adds significantly to our expanding range of clean & renewable energy and ESG ETFs.
“Launching the Solar Energy ETF expands our range of innovative ETFs and ETCs and is another European first which we are delighted to bring to market with EQM Indexes. We are very proud of the many firsts we have brought to the European ETF market including Cloud computing, Emerging markets ecommerce, 5g infrastructure and medical cannabis to name a few. We are not finished here, watch this “Space”.”