Clean energy exchange-traded funds (ETFs) invest in companies that develop and deploy renewable and low-carbon technologies such as wind, solar, hydrogen, battery storage, and electric vehicles. These businesses stand to benefit as global clean energy investment accelerates -- a trend that could require more than $4.5 trillion per year by 2030, up from about $1.8 trillion in 2023.
For investors, the challenge isn’t believing in the trend; it’s picking the right winners. Clean energy ETFs offer a way to gain broad exposure to the sector’s growth while reducing the risk of backing a single stock that falls behind.
Top renewable energy ETFs
Many ETFs focus on clean energy these days, given the amount of money flowing into the sector. Some take a broad approach by investing across the entire industry, while others focus on a single aspect of green energy investing. The different approaches offer investors many ways to invest in clean energy through ETFs.
Here's a list of seven of the top ETFs concentrating on various aspects of the clean energy sector:
Top Clean Energy ETFs | Ticker Symbol | Assets Under Management (AUM) |
|---|---|---|
iShares Global Clean Energy ETF | $2.1 billion | |
First Trust NASDAQ Clean Edge Green Energy Index Fund | $571.2 million | |
Invesco Solar ETF | $1.5 billion | |
Invesco WilderHill Clean Energy ETF | $513.1 million | |
ALPS Clean Energy ETF | $114.2 million | |
First Trust NASDAQ Clean Energy Smart Grid Infrastructure Index | $7.8 billion | |
First Trust Global Wind Energy ETF | $229.1 million |
Here's a closer look at these top clean energy ETFs:
1. iShares Global Clean Energy ETF
NASDAQ: ICLN
Key Data Points
The iShares Global Clean Energy ETF focuses on global companies that produce energy from solar, wind, and other renewable energy sources. The fund had more than 100 holdings in early 2026, led by the following five:
- Bloom Energy (BE +26.85%): 11.2% of the fund's holdings
- Nextpower (NXT -1.95%): 8.8%
- First Solar (FSLR -2.68%): 6.0%
- Iberdrola (FRA:IBE1): 5.7%
- China Yangtze Power: 4.8%
This ETF owns a broad array of clean energy companies. These include businesses that manufacture components for wind turbines and solar energy inverters. It also features businesses that operate wind farms and solar energy facilities, such as electric utilities. This strategy allows investors to focus on companies that produce renewable energy.
However, it's worth noting that the fund concentrates its investments at the top. Its 10 largest holdings make up about 50% of the fund, so a limited number of stocks will drive the fund's overall results.
The fund charges a relatively low ETF expense ratio of 0.39%.
2. First Trust NASDAQ Clean Edge Green Energy Index Fund
NASDAQ: QCLN
Key Data Points
The First Trust NASDAQ Clean Edge Green Energy Index Fund focuses on clean energy companies that trade on major U.S. stock exchanges. It holds companies that manufacture, develop, distribute, and install clean energy technologies, such as solar, wind, battery storage, fuel cells, and electric vehicles (EVs).
The ETF held almost 50 companies in early 2026, led by the following five:
- Bloom Energy: 13.1%
- ON Semiconductor (ON +5.81%): 9.0%
- Tesla (TSLA -0.84%): 8.0%
- Rivian Automotive (RIVN -0.50%): 6.8%
- First Solar: 5.3%
This ETF also concentrates its investments among its largest holdings. However, it still offers investors diversified exposure to the clean energy sector, with a greater focus on transportation electrification and the energy sector. Its holdings include companies focused on semiconductors (18.2%), renewable energy equipment (16.4%), automobiles (16.2%), specialty machinery (13.1%), alternative electricity (9.6%), diversified chemicals (6.1%), general mining (4.1%), and electrical components (1.9%).
The fund has a reasonable ETF expense ratio of 0.56%.
3. Invesco Solar ETF
NYSEMKT: TAN
Key Data Points
The Invesco Solar ETF focuses on companies in the solar energy industry. That includes companies that manufacture panels and electrical components and install solar energy systems.
The ETF had almost 30 holdings as of early 2026, led by the following five:
- Nextpower: 10.5%
- Enlight Renewable Energy (ENLT -0.95%): 8.6%
- Enphase Energy: 7.0%
- First Solar: 6.6%
- GCL Technology Holdings (GCPEF +4.06%): 5.0%
This ETF's focus on solar enables investors to access a basket of top solar energy stocks. It also offers geographic diversification (fewer than half the fund's holdings are U.S.-listed companies) and some sector diversification (42.6% of its holdings are information technology companies, 31.9% are industrials, 21.4% are utilities, and 4.2% are financials). It's an ideal ETF for a directional bet on the upside of solar energy investments.
The fund charges a reasonable expense ratio of 0.7%.
4. Invesco WilderHill Clean Energy ETF
NYSEMKT: PBW
Key Data Points
The Invesco WilderHill Clean Energy ETF focuses on companies listed on U.S. stock exchanges that advance clean energy and conservation. The ETF had over 60 holdings in early 2026, led by the following five companies:
- Bloom Energy: 2.9%
- Amprius Technologies (AMPX +3.30%): 2.7%
- Darling Ingredients (DAR +2.40%): 2.6%
- Powell Industries (POWL -0.84%): 2.5%
- Advanced Energy Industries (AEIS -2.08%): 2.4%
This ETF uses an equal-weight strategy, allocating an equal amount to a broad array of clean energy companies. This strategy allows investors to take a wide-ranging approach to clean energy. The fund invests in companies involved in solar energy, EVs, geothermal energy, energy storage, wind energy, and climate tech. It offers some diversification across sectors (industrials at 41.3%, information technology at 19.2%, materials at 16.8%, consumer discretionary at 12.2%, energy at 4.7%, utilities at 3.4%, and consumer staples at 2.5%).
This ETF has a reasonable expense ratio of 0.64%.
5. ALPS Clean Energy ETF
NYSEMKT: ACES
Key Data Points
The ALPS Clean Energy ETF seeks to provide investors with exposure to a diversified group of U.S. and Canadian companies engaged in renewable and clean energy. That includes solar, wind, hydropower, geothermal, and bioenergy, as well as electric vehicles, energy management and storage, and fuel cells and hydrogen.
This ETF had over 35 holdings as of early 2026, led by the following five:
- Enphase Energy: 6.8%
- Albemarle (ALB +2.13%): 6.7%
- Nextpower: 5.9%
- HA Sustainable Infrastructure Capital (HASI -1.05%): 5.6%
- Brookfield Renewable Partners (BEP -3.46%): 5.5%
The ETF offers fairly broad diversification. Theme allocations included solar (28.2%), electric vehicles (21.3%), energy management and storage (13.8%), wind (13.5%), hydro/geothermal (10.4%), bioenergy (7.8%), and fuel cell/hydrogen (4.9%).
The ETF has a reasonable expense ratio of 0.55%.
6. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund
NASDAQ: GRID
Key Data Points
The First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund aims to track the performance of companies in the grid and electric energy infrastructure sector.
The fund had more than 110 holdings as of early 2026, led by the following five:
- National Grid (NGG -1.68%): 8.6%
- ABB (NYSE:ABB): 8.6%
- Johnson Controls (JCI -0.17%): 8.5%
- Schneider Electric (OTCMKTS:SBGSY): 7.9%
- Eaton Corporation (ETN -0.56%): 7.4%
This ETF offers exposure to the following sectors: electrical components (32.4%), multi-utilities (13.3%), diversified industrials (11.1%), conventional electricity (9.8%), electric equipment control and filter (8.5%), engineering and contracting services (6.1%), semiconductors (4.6%), software (2.3%), automobiles (2.1%), and auto parts (1.9%).
The ETF has an expense ratio of 0.56%.
7. First Trust Global Wind Energy ETF
NYSEMKT: FAN
Key Data Points
The First Trust Global Wind Energy ETF focuses on wind energy. It holds two types of wind energy companies:
- Pure-play companies that get at least 50% of their revenue from wind-related activities (60% of the fund).
- Diversified companies that have some involvement in the wind industry (40% of the fund).
This fund had nearly 45 holdings in early 2026, led by the following five:
- Nordex (OTC:NRDX.F): 9.0%
- Enlight Renewable Energy (ENLT -0.95%): 8.9%
- Vestas Wind Systems: 8.1%
- EDP Renovaveis (EDRVF +9.82%): 6.7%
- Northland Power (NPIFF -2.24%): 5.4%
This ETF's focus on wind energy makes it ideal for investors looking to invest specifically in the sector's growth. It also offers broad geographic diversification and exposure to diversified companies with wind activities, complementing its pure-play wind energy holdings.
The ETF has a reasonable expense ratio of 0.60%.
Benefits of Investing in Clean Energy ETFs
Clean energy ETFs provide investors with the following potential benefits:
- Environmentally friendly investment: Investing in a clean energy ETF lets you potentially profit from companies that make a positive environmental impact, not harm it.
- Strong growth potential: Demand for clean energy is growing briskly, which could power strong returns for clean energy ETFs.
- Passive income: Many clean energy companies pay dividends, which ETFs collect and distribute to investors, enabling them to make some passive income.
- Potential hedge against rising energy costs: Clean energy ETFs should rise in value in the future, which could help you offset the impact of rising energy costs.
What to consider when investing in clean energy ETFs
Investors need to evaluate a few factors before investing in a clean energy ETF, including:
- Investment focus: Some clean energy ETFs focus on specific sub-sectors, such as wind or solar energy. Meanwhile, others invest more broadly in the clean energy trend.
- Cost: Investors need to determine whether the fund's expense ratio is worth it.
- Size of the fund: A small fund by AUM is at a higher risk of closing and returning capital to investors.
Future of Clean Energy
Electricity demand has grown at a modest rate over the past two decades (10% overall in the U.S. from 2005 to 2025). However, most forecasters expect demand to accelerate in the coming years (a six-fold increase in the growth rate in the U.S.), powered by AI data centers, advanced manufacturing facilities, and electric vehicles. That should drive robust demand for clean energy, benefitting clean energy ETFs.
The bottom line
These ETFs allow anyone to easily invest in one or more aspects of clean energy. Some focus on a specific type of alternative energy, such as wind power or solar energy, while others offer broader exposure across the entire clean energy investment landscape. That allows investors to target a green energy trend, which should help reduce the risk of picking an underperforming clean energy stock.
Related investing topics
FAQ
Clean Energy ETFs FAQ
About the Author
Matt DiLallo has positions in First Solar and Tesla. The Motley Fool has positions in and recommends Bloom Energy, First Solar, Fluence Energy, Johnson Controls International, Nextpower, and Tesla. The Motley Fool recommends National Grid Plc, ON Semiconductor, and Ørsted A/s. The Motley Fool has a disclosure policy.
