Which Is the Better Energy Sector ETF, the AMLP's Focus on Traditional Energy or Invesco's TAN Targeting Solar?
AMLP offers a 7% dividend yield and lower volatility, while TAN delivers higher growth potential and 41% one-year returns.
Overview
The Alerian MLP ETF (NYSEMKT:AMLP) provides income-focused exposure to energy infrastructure with lower volatility, while the Invesco Solar ETF (NYSEMKT:TAN) offers a high-beta play on the renewable technology sector.
While both funds provide a gateway to the energy sector, they focus on fundamentally different industrial subsets and risk profiles. One fund concentrates on the physical infrastructure and cash flows of traditional energy, whereas the other tracks the rapid evolution of renewable technology. This comparison evaluates how their assets under management (AUM), costs, and historical volatility diverge for long-term investors.
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.
Source
Originally published at www.fool.com.