ICLN Outperforms TAN with Lower Fees and Broader Renewable Energy Exposure
iShares' ICLN offers broader diversification and lower costs than Invesco's solar-specific TAN, outperforming the latter over the last year.
iShares' Global Clean Energy ETF (ICLN) has outperformed Invesco's Solar ETF (TAN) over the trailing twelve months, delivering a 23.8% total return compared to TAN's 12.2%. As of September 10, 2026, ICLN trades at $17.82 per share, while TAN is priced at $47.04. The performance gap reflects ICLN's diversified strategy across wind, solar, and other sustainable power technologies, whereas TAN remains a concentrated vehicle focused exclusively on the solar industry.
The cost structure further differentiates the two funds. ICLN carries an expense ratio of 0.38%, which is 0.32 percentage points lower than TAN's 0.7%. For investors in the volatile renewable energy sector, this lower management fee helps preserve capital over multi-year horizons. Additionally, ICLN offers a trailing-12-month dividend yield of 1.0%, a feature absent in TAN's distribution model.
Portfolio Composition And Risk Profiles
ICLN provides exposure to 105 global companies, with its portfolio weighted 41% toward utilities, 32% toward technology, and 25% toward industrials. Its largest positions include Bloom Energy at 8.94% and First Solar at 7.65%. In contrast, TAN holds only 36 positions, dominated by the energy sector at 55% and utilities at 31%. First Solar represents 10.22% of TAN's assets, followed by Nextracker at 8.81% and Enlight Renewable Energy at 6.87%.
Risk metrics highlight the trade-off between concentration and diversification. Over the past five years, TAN experienced a maximum drawdown of 74.0%, compared to 57.2% for ICLN. A $1,000 investment in TAN five years ago would be worth $568 today, while the same amount in ICLN would be worth $843. TAN's beta of 1.40 indicates higher volatility relative to the S&P 500 than ICLN's beta of 1.09.
Strategic Differences In Fund Management
TAN tracks the MAC Global Solar Energy Index using a market-cap-weighted methodology, making its returns heavily dependent on top holdings. Recent index changes in June will influence its future performance. ICLN applies an ESG screen to its selection process and was launched in 2008, similar to TAN. However, ICLN's larger asset base of $2.1 billion, compared to TAN's $1.0 billion, provides greater liquidity for traders.
According to analysis from GN auto stocks/energy-stocks: renewable energy stocks, ICLN is the preferred choice for investors seeking broad exposure to the energy transition. The rise of artificial intelligence has driven unprecedented demand for electricity, with tech companies increasingly seeking renewable sources. ICLN's diversified portfolio of over 100 equities offers a more balanced approach than TAN's narrow solar focus, making it suitable for those prioritizing lower fees, dividends, and reduced single-sector risk.
