ICLN vs TAN: Correlation
iShares Global Clean Energy ETF (ICLN) and Invesco Solar ETF (TAN) show a very strong relationship: their 3-year correlation of weekly returns is 0.89.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ICLN and TAN?
On 3 years of weekly data the ICLN/TAN correlation comes out at 0.89, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.83 over 1 year against 0.89 over 3. The 5-year figure is 0.92, and annualized covariance runs at 795.7 %².
Few assets follow ICLN as closely as TAN, which ranks #1 of 78 tracked partners. Neither side won the trailing year by much: +25.6% against +21.4%. Stability stands out here, with the rolling one-year correlation confined to 0.81 through 0.97. Risk is not evenly split, since TAN carries 1.6 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ICLN vs TAN: side by side
| ICLN (iShares Global Clean Energy ETF) | TAN (Invesco Solar ETF) | |
|---|---|---|
| 1-year return | +25.6% | +21.4% |
| 5-year return | -18.4% | -41.9% |
| Volatility (ann.) | 24.0% | 37.4% |
| Beta vs S&P 500 | 0.78 | 1.04 |
| Max drawdown (3Y) | -34.6% | -55.4% |
| Dividend yield | 1.05% | – |
| Expense ratio | 0.39% | – |
| Assets under management | $2.3B | – |
| Sector / category | ETF · Thematic | ETF · Thematic |
ICLN, iShares's Miscellaneous Sector fund, carries $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% trailing dividend yield.
Year-by-year returns
| Year | ICLN | TAN |
|---|---|---|
| 2022 | -5.4% | -5.2% |
| 2023 | -20.4% | -26.8% |
| 2024 | -25.7% | -37.6% |
| 2025 | +47.0% | +48.3% |
| 2026 | +8.8% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and TAN good diversifiers for each other?
Not really. At 0.89, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between ICLN and TAN?
Using weekly returns as of 2026-08-27: 0.89 over 3 years, with 0.83 over the last year and 0.92 over 5 years.
Is TAN a good diversifier for ICLN?
Not really. At 0.89, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.89 mean?
On the −1 to +1 scale, 0.89 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/icln-vs-tan.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/icln-vs-tan/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ICLN correlations · TAN correlations
