XOP vs TAN: Will an Oil & Gas ETF Bring More Profits Than a Solar Fund in 2026?
XOP's 0.35% expense ratio and lower volatility appeal to conservative investors, while TAN's 1.41 beta offers higher conviction exposure to renewable energy.
Overview
The State Street SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) offers lower-cost exposure to traditional energy, while the Invesco Solar ETF (NYSEMKT:TAN) provides more volatile, high-conviction access to the renewable energy sector.
These two funds represent opposite ends of the energy spectrum. One tracks companies pulling oil and gas from the ground, while the other follows the manufacturing and deployment of solar power. Choosing between State Street SPDR S&P Oil & Gas Exploration & Production ETF and Invesco Solar ETF often depends on an investor's view of energy transition timing and risk tolerance.
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 Aug. 13.
Source
Originally published at www.fool.com.