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Solar ETFs Back in Focus After New Polysilicon Tariff

BY | ETF Database
7:46 am ET 08/11/26 | 10 VIEWS
Solar ETFs moved into focus Friday after President Donald Trump announced new tariffs targeting imported products made from polysilicon, a key material used in solar panel manufacturing. The tariffs could give U.S. solar manufacturers an advantage over lower-cost imports, potentially creating a tailwind for the domestic solar industry and the clean energy ETFs that track it.Key Takeaways Polysilicon tariff could strengthen U.S. solar manufacturers by making lower-cost imports more expensive and improving the competitive landscape. The Invesco Solar ETF (TAN B-) has gained 44.6% over the past year and offers targeted exposure to solar manufacturers, equipment suppliers and other companies across the solar supply chain. Broader clean energy funds like the ALPS Clean Energy ETF (ACES B) returned 21.7% over the past year, with 26.41% of the portfolio in solar, 19.74% in electric vehicles and 14.93% in wind. Tariffs Could Give U.S. Solar a BoostChina has long dominated production across much of the global solar supply chain, including polysilicon. That has created a challenging environment for U.S. manufacturers competing against lower-cost imports. The new tariffs could begin to change that dynamic. By raising the cost of imported products made from polysilicon, the policy could give domestic manufacturers more room to compete on price. That could potentially improve pricing power and margins for U.S. solar companies. See More: Clean Energy Stocks Can Get Their Grooves BackSolar ETFs to Watch as Tariff Impact Takes Shape The market reaction was already visible Friday. Shares of solar manufacturer First Solar (FSLR) jumped following the announcement. FSLR is a top holding in both the Invesco Solar ETF (TAN B-) and the ALPS Clean Energy ETF ACES). and Enlight Renewable Energy Ltd. (ENLT), as of August 10. TAN has returned 44.6% over the last year according to ETF Database. For investors looking to target the solar theme specifically, TAN provides a relatively straightforward way to do so.ACES Provides Broader Clean Energy ExposureInvestors looking for more diversification could turn to clean energy ETFs like ACES. The ETF spreads its exposure across several areas of the energy transition. These include renewable energy, energy storage, grid infrastructure and electric transportation. The broader mix could make ACES less sensitive to a solar-specific catalyst. While solar accounts for 26.41% of the fund, electric vehicles account for 19.74% of the portfolio. Wind represents 14.93%. As a result, investors can gain exposure to the potential solar tailwind without relying as heavily on the performance of solar companies alone. ACES has returned 21.7% over the last year. For now, the rally in solar stocks suggests investors view the tariffs as a potential positive for domestic manufacturers. Over time, the impact will depend on how the policy affects costs, competition and profitability across the solar industry. For more news, information, and analysis, visit the ETF Building Blocks Content Hub.

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