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 +3.07%): 8.9%
- Vestas Wind Systems: 8.1%
- EDP Renovaveis (EDRVF +9.82%): 6.7%
- Northland Power (NPIFF +1.50%): 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.
