Carbon Bubble

Traders Sour on Clean Energy as Bets Against Invesco ETF Surge

Cash leaks from ETFs; solar industry faces supply-chain issues and short interest in Invesco fund hits almost 10%.

Photographer: Bartek Sadowski/Bloomberg
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A hot Wall Street trade is cooling down as supply-chain chaos emboldens short bets against one of Invesco Ltd.’s clean-energy ETFs.

With the green industry facing all manner of logistical snafus, as many as 9.9% of outstanding shares in the $3 billion Solar ETF (ticker TAN) were on loan to short sellers last week, according to data from IHS Markit Ltd. That’s the highest level since April, when short interest reached 10.1% just before the fund slumped 25%.