Launch of a New Exchange-Traded Fund (ETF) by Invesco on Xetra.
The Invesco Solar Energy UCITS ETF (SOLR) is poised to benefit from the global push towards net-zero emissions, particularly in the solar energy sector. This ETF, with an ISIN of IE00BM8QRZ79, offers investors access to companies worldwide involved in solar energy.
The ETF is composed of approximately 20 companies, weighted by their level of engagement in the solar industry and market capitalization. This includes manufacturers, service providers, raw material and component suppliers, and electricity sellers from the solar energy sector. Notably, companies included in the ETF derive at least one-third of their revenues from solar energy.
The ETF has shown moderate growth potential this year, with gains such as +5.92% YTD and +4.01% over the past month, and a notable 9.76% return in July 2025. However, its longer-term performance has been weak, with a maximum drawdown since launch of -72.48% and negative total returns over 1, 3, and 5 years in many periods, reflecting the sector’s volatility and challenges.
The ETF's volatility is very high, with a 1-year volatility of about 35%, underscoring solar energy’s risk profile in equity markets. Analyst ratings reflect this uncertainty: the ETF currently carries a negative Morningstar Medalist Rating, implying expectations of underperformance relative to peers over the medium term.
Despite these challenges, global efforts toward achieving net-zero emissions strongly favor renewable energy growth, particularly solar power, due to its falling costs and scalability. Governments worldwide are setting ambitious solar deployment targets as part of clean energy transitions, which should ultimately support demand and valuations for solar-related equities and funds like the Invesco Solar Energy UCITS ETF.
However, it's important to note that the fund's high concentration in the solar sector means it remains a high-risk, long-term investment. It is more suitable for risk-tolerant investors who believe in solar energy's future expansion amid the global decarbonization drive.
Gary Buxton, Head of EMEA ETFs and indexed strategies at Invesco, made this statement. It's also worth mentioning that companies with business activities in nuclear energy, coal-fired power plants, and oil and gas are excluded from the ETF.
A confirmation email has been sent to activate the subscription for a newsletter or update regarding the Invesco Solar Energy UCITS ETF. If not found in the inbox, it may be in the spam folder. The deadline for activating the subscription or any consequences for not activating it are not mentioned in the paragraph.
An investor considering the Invesco Solar Energy UCITS ETF might find the fund's composition interesting, as it consists of technology companies involved in various aspects of the solar industry. Furthermore, insurance firms could potentially benefit from the increasing adoption of solar energy, given the rising demand for insurance solutions to cover solar projects and their associated risks.
%20by%20Invesco%20on%20Xetra.){kind=link}