How do I invest in clean energy?

There are a few ways to invest in clean energy. You can buy shares of a publicly traded company that focuses on owning or investing in clean energy. Alternatively, you can invest in an exchange-traded fund or a mutual fund focused on clean energy stocks. You could also consider installing solar panels on your home or buying an electric vehicle.

What are the clean energy ETFs?

There are dozens of clean energy ETFs. Some of the top clean energy ETFs are:iShares Global Clean Energy ETF.First Trust NASDAQ Clean Edge Green Energy Index Fund.Invesco Solar ETF.Invesco WilderHill Clean Energy ETF.ALPS Clean Energy ETF.First Trust NASDAQ Clean Energy Smart Grid Infrastructure Index.First Trust Global Wind Energy ETF.

Is the Global Clean Energy ETF a good investment?

The iShares Global Clean Energy ETF has had periods when it has been a good investment. It has delivered an 8.9% annualized return over the past decade and a robust 62.5% gain over the past year (through early June 2026). However, it has also had periods of poor performance. It has produced a negative 3.8% total annual return since its inception in late 2008. It has also delivered a negative total annual return over the last three- and five-year periods. Past performance doesn't guarantee the fund will deliver similar results in the future. It's in a strong position to be a good investment in the coming years, especially as demand for clean energy accelerates. That catalyst could enable the fund's holdings to deliver faster earnings growth and higher total returns for investors going forward.

Who is the biggest investor in clean energy?

Brookfield is the world's largest private investor in clean energy with $142 billion in assets under management as of mid-2026. It invests in hydro, wind, solar, battery storage, and sustainable solutions, including nuclear services and carbon capture and storage.

Do clean energy ETFs pay dividends?

Yes, most clean energy ETFs pay dividends. They typically hold shares in some companies that pay dividends, which they collect and distribute to investors on an annual, biannual, or quarterly basis.

Are clean energy ETFs volatile compared to traditional energy ETFs?

Clean energy ETFs can be more volatile compared to traditional energy ETFs. While oil and gas prices can be volatile, so can demand for new clean energy, which fluctuates based on energy prices, government policies, and economic conditions. Further, most traditional energy ETFs have significant weightings towards the largest energy companies in the world, which reduces volatility.

7 Best Clean Energy ETFs for 2026 and How to Invest

Q: What is the top clean energy ETF?

The top clean energy ETF by assets under management is First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index. It had almost $11.2 billion in AUM in mid-2026.

A look at some of the best ways to invest in green energy using exchange-traded funds.

By Matthew DiLallo – Updated Jun 8, 2026 at 9:50 AM EST | Fact-checked by Frank Bass

+Fool.comon

Key Points

Clean energy ETFs provide diverse exposure to renewable tech, minimizing single-stock risk.
Global clean energy investments rose to $2.3 trillion in 2025, and projects to hit $2.9 trillion annually in the next five years.
Different clean energy ETFs allow investment in specific sectors like solar, wind, or the broader alternative energy market.

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. According to BloombergNEF, global energy transition spending rose 8% in 2025 to $2.3 trillion and could reach $2.9 trillion in the next five years.

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.

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Seven top clean 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 green energy industry, while others focus on a single aspect, such as solar or wind energy. 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:

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Ticker Information Table
Name and ticker	Current price
First Trust Exchange-Traded Fund II - First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index (NASDAQ:GRID)	$184.17
First Trust Exchange-Traded Fund II - First Trust Global Wind Energy ETF (NYSEMKT:FAN)	$24.18
Alps ETF Trust - Alps Clean Energy ETF (NYSEMKT:ACES)	$33.70
Invesco Exchange-Traded Fund Trust - Invesco WilderHill Clean Energy ETF (NYSEMKT:PBW)	$35.68
Invesco Exchange-Traded Fund Trust II - Invesco Solar ETF (NYSEMKT:TAN)	$54.95
First Trust Exchange-Traded Fund - First Trust Nasdaq Clean Edge Green Energy Index Fund (NASDAQ:QCLN)	$56.55
iShares Trust - iShares Global Clean Energy ETF (NASDAQ:ICLN)	$19.33

Data as of Jul 10, 2026. Showing 7 of 7 total entries.

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Here's a closer look at these top clean energy ETFs:

1. iShares Global Clean Energy ETF

NASDAQ: ICLN

iShares Trust - iShares Global Clean Energy ETF

Today's Change

(1.47%) $0.28

Current Price

$19.33

Key Data Points

AUM

$2.7B

Dividend Yield

0.95%

Expense Ratio

0.39%

Top Holdings

13.88%

FSLR

8.57%

NXT

7.07%

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2. First Trust NASDAQ Clean Edge Green Energy Index Fund

NASDAQ: QCLN

First Trust Exchange-Traded Fund - First Trust Nasdaq Clean Edge Green Energy Index Fund

Today's Change

(2.82%) $1.55

Current Price

$56.55

Key Data Points

AUM

$781M

Dividend Yield

0.15%

Expense Ratio

0.59%

Top Holdings

9.17%

TSLA

8.96%

MPWR

7.88%

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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 $846.3 billion in assets across 52 companies in mid-2026, led by the following five:

ON Semiconductor (ON +4.35%): 11.0%
Bloom Energy: 10.6%
Monolithic Power Systems (MPWR +4.46%): 8.1%
First Solar: 7.6%
Tesla (TSLA +3.06%): 6.1%

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 (28.1%), renewable energy equipment (19.0%), specialty machinery (10.6%), automobiles (10.1%), alternative electricity (8.9%), electrical components (6.4%), diversified chemicals (3.8%), general mining (3.5%), and alternative fuels (1.5%).

The fund has a reasonable ETF expense ratio of 0.59%.

3. Invesco Solar ETF

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NYSEMKT: TAN

Invesco Exchange-Traded Fund Trust II - Invesco Solar ETF

Today's Change

(1.50%) $0.81

Current Price

$54.95

Key Data Points

AUM

$1.7B

Expense Ratio

0.70%

Top Holdings

NXT

10.16%

FSLR

9.69%

ENPH

6.72%

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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 $2 billion in AUM across 32 holdings as of mid-2026, led by the following five:

First Solar: 12.2%
Nextpower: 9.4%
Enphase Energy: 8.2%
Enlight Renewable Energy (ENLT -2.60%): 7.4%
SolarEdge Technologies (SEDG +4.48%): 6.0%

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, 30.5% are industrials, 23.5% are utilities, and 3.5% 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% to provide targeted exposure to solar energy stocks.

4. Invesco WilderHill Clean Energy ETF

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NYSEMKT: PBW

Invesco Exchange-Traded Fund Trust - Invesco WilderHill Clean Energy ETF

Today's Change

(1.57%) $0.55

Current Price

$35.68

Key Data Points

AUM

$458M

Dividend Yield

1.32%

Expense Ratio

0.64%

Top Holdings

OPAL

1.93%

DAR

1.82%

BETA

1.79%

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The Invesco WilderHill Clean Energy ETF focuses on companies listed on U.S. stock exchanges that advance clean energy and conservation. The ETF had $582.7 million in AUM across 69 holdings in mid-2026, led by the following five companies:

Hyliion Holdings (HYLN +4.94%): 4.2%
Navitas Semiconductor (NVTS +6.14%): 3.2%
FuelCell Energy (FCEL +2.04%): 3.0%
Ballard Power Systems (BLDP +0.00%): 2.2%
Bloom Energy: 2.1%

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 44.7%, information technology at 22.0%, materials at 16.7%, consumer discretionary at 9.9%, energy at 3.2%, utilities at 2.4%, and consumer staples at 1.1%).

This ETF has a reasonable expense ratio of 0.64%.

5. ALPS Clean Energy ETF

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NYSEMKT: ACES

Alps ETF Trust - Alps Clean Energy ETF

Today's Change

(1.32%) $0.44

Current Price

$33.70

Key Data Points

AUM

$125M

Dividend Yield

0.66%

Expense Ratio

0.55%

Top Holdings

RIVN

5.83%

TSLA

5.76%

HASI

5.54%

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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 $140 million in AUM across 37 holdings as of mid-2026, led by the following five:

First Solar: 6.2%
Enphase Energy: 5.9%
Nextpower: 5.5%
Ormat Technologies (ORA -0.69%): 5.4%
Plug Power (PLUG -3.25%): 5.4%

The ETF offers fairly broad diversification. Theme allocations included solar (29.4%), electric vehicles (17.7%), energy management and storage (15.1%), wind (12.9%), hydro/geothermal (10.5%), bioenergy (7.5%), and fuel cell/hydrogen (6.9%).

The ETF has a reasonable expense ratio of 0.55%.

6. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund

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NASDAQ: GRID

First Trust Exchange-Traded Fund II - First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index

Today's Change

(0.90%) $1.65

Current Price

$184.17

Key Data Points

AUM

$12B

Dividend Yield

0.78%

Expense Ratio

0.56%

Top Holdings

ETN

8.31%

SU.FP

8.17%

ABBN.SW

8.11%

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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 $11.2 billion in AUM across 120 holdings as of mid-2026, led by the following five:

ABB (NYSE:ABB): 8.4%
Eaton Corporation (ETN +1.57%): 8.0%
Johnson Controls (JCI +0.21%): 7.6%
Schneider Electric (OTCMKTS:SBGSY): 7.1%
National Grid (NGG -1.45%): 6.6%

This ETF offers exposure to the following sectors: electrical components (34.2%), diversified industrials (11.5%), multi-utilities (10.3%), conventional electricity (8.7%), electric equipment control and filter (7.6%), engineering and contracting services (6.6%), semiconductors (5.8%), software (2.4%), automobiles (2.0%), and telecommunications equipment (1.8%).

The ETF has an expense ratio of 0.56%.

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7. First Trust Global Wind Energy ETF

NYSEMKT: FAN

First Trust Exchange-Traded Fund II - First Trust Global Wind Energy ETF

Today's Change

(0.41%) $0.10

Current Price

$24.18

Key Data Points

AUM

$303M

Dividend Yield

0.97%

Expense Ratio

0.61%

Top Holdings

VWS.DC

8.73%

ORSTED.DC

7.82%

NDX1.GY

7.57%

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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 $305.7 million in AIM across 47 holdings in mid-2026, led by the following five:

Orsted (DNNGY +0.95%): 8.1%
Vestas Wind Systems: 8.0%
Nordex (OTC:NRDX.F): 7.2%
EDP Renovaveis (EDRVF +0.00%): 6.7%
Northland Power (NPIFF +1.44%): 5.9%

This ETF's focus on wind energy makes it ideal for investors seeking to capitalize on 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%.

How to buy clean energy ETFs

Here's a step-by-step guide on how to invest in clean energy ETFs:

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker into the search bar to bring up the ETF’s trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks 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 rather than 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.

However, investing in clean energy ETFs isn't without risks, which include:

Underperformance potential: A clean energy ETF could underperform the top clean energy stocks.
Costs: An ETF's expense ratio can drag on its long-term performance.
Geopolitical risks: Administration changes, regulatory issues, and other geopolitical factors can impact the growth and performance of clean energy companies.

Should you invest in clean energy ETFs?

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.

Investing in a clean energy ETF is an easy way to invest broadly in the clean energy sector or target a specific sub-sector. That allows investors to reduce the risk of picking an underperforming clean energy stock. Given the growth ahead in clean energy, investors should consider adding a clean energy ETF or some high-quality clean energy stocks to their portfolio.

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FAQ

Clean Energy ETFs FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

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.

7 Best Clean Energy ETFs for 2026 and How to Invest

A look at some of the best ways to invest in green energy using exchange-traded funds.

Key Points

Seven top clean energy ETFs

1. iShares Global Clean Energy ETF

Key Data Points

2. First Trust NASDAQ Clean Edge Green Energy Index Fund

Key Data Points

3. Invesco Solar ETF

Key Data Points

4. Invesco WilderHill Clean Energy ETF

Key Data Points

5. ALPS Clean Energy ETF

Key Data Points

6. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund

Key Data Points

7. First Trust Global Wind Energy ETF

Key Data Points

How to buy clean energy ETFs

Benefits and risks of investing in clean energy ETFs

Should you invest in clean energy ETFs?

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3 Best Natural Gas Stocks to Buy in 2026 and How to Invest in Them

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FAQ

Clean Energy ETFs FAQ

What is the top clean energy ETF?

What is the top clean energy ETF?

How do I invest in clean energy?

How do I invest in clean energy?

What are the clean energy ETFs?

What are the clean energy ETFs?

Is the Global Clean Energy ETF a good investment?

Is the Global Clean Energy ETF a good investment?

Who is the biggest investor in clean energy?

Who is the biggest investor in clean energy?

Do clean energy ETFs pay dividends?

Do clean energy ETFs pay dividends?

Are clean energy ETFs volatile compared to traditional energy ETFs?

Are clean energy ETFs volatile compared to traditional energy ETFs?

About the Author

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Seven top clean energy ETFs

Key Data Points

6. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund

Key Data Points

Benefits and risks of investing in clean energy ETFs

Should you invest in clean energy ETFs?

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3 Best Natural Gas Stocks to Buy in 2026 and How to Invest in Them

3 Best Renewable Energy Dividend Stocks for 2026 and How to Invest

5 Best Electric Vehicle ETFs for 2026 and How to Invest

Clean Energy ETFs FAQ

What is the top clean energy ETF?

What is the top clean energy ETF?

How do I invest in clean energy?

How do I invest in clean energy?

What are the clean energy ETFs?

What are the clean energy ETFs?

Is the Global Clean Energy ETF a good investment?

Is the Global Clean Energy ETF a good investment?

Who is the biggest investor in clean energy?

Who is the biggest investor in clean energy?

Do clean energy ETFs pay dividends?

Do clean energy ETFs pay dividends?

Are clean energy ETFs volatile compared to traditional energy ETFs?

Are clean energy ETFs volatile compared to traditional energy ETFs?

Key Data Points

Key Data Points

Key Data Points

5. ALPS Clean Energy ETF

3. Invesco Solar ETF

Key Data Points

Key Data Points

4. Invesco WilderHill Clean Energy ETF

How to buy clean energy ETFs