Investors seeking to profit from the clean energy transition often face a choice: bet on a specific technology or position themselves in broader infrastructure. The Invesco Solar ETF (TAN) focuses on the solar energy supply chain, while the First Trust North American Energy Infrastructure Fund (EMLP) invests in energy infrastructure such as utilities and pipelines. The following compares these two ETFs from the perspectives of volatility, fees, and asset concentration.
As of June 2, 2026, TAN had a one-year total return of 127.1%, far exceeding EMLP’s 19.6%. TAN has an expense ratio of 0.70%, while EMLP’s is 0.95%. EMLP offers a dividend yield of 2.8%; this data is not available for TAN. In terms of volatility, TAN has a beta of 1.36, compared to EMLP’s 0.56 (beta is calculated based on five-year monthly returns and measures price volatility relative to the S&P 500 Index). Regarding asset size, TAN manages $2.3 billion, while EMLP manages $3.9 billion.
The First Trust fund has a higher expense ratio of 0.95%, whereas the Invesco fund charges 0.70%. This 0.25 percentage point difference reflects the additional costs associated with active management and infrastructure-specific research. For investors who prefer low-cost passive index investing, the Invesco fund offers a more economical way to participate in the clean energy sector.
The First Trust North American Energy Infrastructure Fund is an actively managed fund focused on the physical assets required for energy storage and transportation. Its sector allocation is balanced: energy 48%, utilities 47%, and industrials 4%. Its top three holdings are Energy Transfer (7.51%), Enterprise Products Partners (7.24%), and MPLX (4.2%). Launched in 2012, the fund holds 63 securities and applies ESG screening criteria.
The Invesco Solar ETF was launched in 2008 and is a thematic fund entirely concentrated in the solar energy industry. It tracks the MAC Global Solar Energy Index and has a more concentrated portfolio, holding 32 individual stocks. Its sector distribution is: energy 57%, utilities 22%, and technology 10%. Its top three holdings are First Solar (12.1%), Nextpower (9.73%), and Enphase Energy (9.44%).
Although both the Invesco Solar ETF and the First Trust North American Energy Infrastructure Fund operate within the energy sector, their positioning and holdings differ significantly.
TAN is a pure-play solar theme investment, investing in companies that provide solar modules, inverters, installation services, and materials. Solar energy is one of the fastest-deployable clean energy sources and is being rapidly adopted amid the wave of AI data center construction. The U.S. Energy Information Administration forecasts that by 2030, solar photovoltaics will account for 80% of new global renewable energy capacity.
In contrast, EMLP is a broader ETF that provides investors with exposure to multiple energy subsectors, including natural gas pipelines, crude oil storage, utilities, and power transmission. Since most companies in these subsectors pay dividends, this ETF is more attractive to income-oriented investors than TAN.
TAN and EMLP represent two different paths in energy investing—one offering high volatility and high return potential, focusing on the rapidly growing but cyclical niche of solar energy; the other offering low volatility and dividend income, positioning itself in stable energy infrastructure. Investors should make their choices based on their own risk tolerance and return objectives.
