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5 Best Performing Stocks of the Top ETF of November

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Invesco Solar ETF (TAN - Free Report) topped the list of the best-performing ETFs of November, with impressive returns of about 14.5%.

The rally was mainly driven by the outcome of the mid-term election, wherein Democrats won the House of Representatives while the Republicans maintained control of the Senate. This resulted in a split Congress with a Republican president. The rally was due to the fact that the split government will limit Trump administration’s policies. Trump has kept the alternative energy space under pressure, giving downtrodden coal a major boost. The trend will likely reverse as Democrats support renewable energy and climate change (read: Is a Split Congress Good for the Market? ETFs in Focus).

Let’s take a closer look at the fundamentals of TAN.

TAN in Focus

This ETF offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index, holding 23 stocks in the basket. It is moderately concentrated across components with each making up for no more than 7.2% of the assets. American firms dominate the fund’s portfolio with nearly 44.3% share, followed by China (25.4%) and Spain (7.3%). The product has amassed $280.8 million in its asset base and trades in solid volume of around 107,000 shares a day. It charges investors 70 bps in fees per year and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (see: all the Alternative Energy ETFs).

Though most of the stocks in the fund’s portfolio delivered strong returns, a few stocks listed on the American stock exchange have outperformed. Below, we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund’s basket:

Best Performing Stocks of TAN

JinkoSolar Holding Company Limited (JKS - Free Report) : The stock has surged about 49% this month. It currently carries a Zacks Rank #3 (Hold) and has a VGM Score of B. The stock witnessed no earnings estimate revisions in a month for this year and has an estimated earnings growth rate of 244.1%. It occupies the fifteenth spot in the fund’s basket with 3.8% of the total assets.

Vivint Solar Inc. (VSLR - Free Report) : This stock takes the ninth position in the fund’s basket with 4.6% allocation. It has also delivered solid returns of 35.3% in November. The Zacks Consensus Estimate for 2018 has come down by 7 cents in a month but represents a year-over year increase of 101.27%. Vivint Solar has a Zacks Rank #4 and a VGM Score of F.

DAQO New Energy Corp (DQ - Free Report) : This stock takes the #17 spot in the fund’s basket, with 3.2% of the assets. It has gained 26.8% this month and has seen negative earnings estimate revision of 47 cents for this year over the past 30 days. Its earnings are expected to decline 55.9% for this year. DAQO New Energy currently has a Zacks Rank #1 (Strong Buy) and a VGM Score of D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Canadian Solar Inc. (CSIQ - Free Report) : The stock is up nearly 24.1% in November. It carries a Zacks Rank #1 and a VGM Score of A. The stock has seen positive earnings estimate revision of 72 cents for this year over the past month and its earnings are expected to grow 45%. The stock occupies the sixth position and accounts for 5.4% share in TAN.

Enphase Energy Inc. (ENPH - Free Report) : The stock has gained about 5.1% this month. It has seen positive earnings estimate revision of a penny for this year over the past month with an expected earnings growth rate of 144%. ENPH currently has a Zacks Rank #3 and a VGM Score of C. The stock occupies the sixth position in the fund’s portfolio, making up for 5.1% share (read: Small-Cap ETFs & Stocks to Outperform This Holiday Season).

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