Is an Oil & Gas ETF or a Solar Stock Fund the Better Buy in 2026?
XLE charges just 0.08% annually versus TAN's 0.7%, but TAN delivered stronger 10-year returns despite far steeper drawdowns.
Overview
The State Street Energy Select Sector SPDR ETF (NYSEMKT:XLE) offers low-cost, mature energy exposure with lower volatility, whereas the Invesco Solar ETF (NYSEMKT:TAN) provides high-conviction, volatile access to the solar industry.
While both funds represent the energy sector, they focus on very different sub-industries. XLE tracks traditional fossil fuel giants and energy services within the S&P 500, whereas TAN targets the specialized solar supply chain. This comparison helps investors determine if they prefer broad energy stability or niche renewable growth potential.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 23.
Source
Originally published at www.fool.com.