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 a 10.7% annualized return over the past decade and a robust 58.5% gain over the past year (through early August 2026). However, it has also had periods of poor performance. It has produced a negative 3.1% total annual return since its inception in late 2008. It has also delivered a negative total annual return over the last five years. 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 $144 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, many 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 world's largest energy companies, 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 nearly $12.1 billion in AUM as of mid-2026.

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

By Matthew DiLallo – Updated Aug 11, 2026 at 8:03 PM EST | Fact-checked by Frank Bass

+Fool.comon

Key Points

Global clean energy investment rose to $2.3 trillion in 2025, with further growth expected.
Clean energy ETFs provide diverse exposure to renewable technologies, reducing risk compared to investing in a clean energy single stock.
The top ETFs cover various areas of clean energy, letting investors target specific or broad sectors.

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)	$182.78
First Trust Exchange-Traded Fund II - First Trust Global Wind Energy ETF (NYSEMKT:FAN)	$24.02
Alps ETF Trust - Alps Clean Energy ETF (NYSEMKT:ACES)	$31.65
Invesco Exchange-Traded Fund Trust - Invesco WilderHill Clean Energy ETF (NYSEMKT:PBW)	$33.55
Invesco Exchange-Traded Fund Trust II - Invesco Solar ETF (NYSEMKT:TAN)	$50.47
First Trust Exchange-Traded Fund - First Trust Nasdaq Clean Edge Green Energy Index Fund (NASDAQ:QCLN)	$50.82
iShares Trust - iShares Global Clean Energy ETF (NASDAQ:ICLN)	$17.83

Data as of Aug 20, 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

(0.51%) $0.09

Current Price

$17.83

Key Data Points

AUM

$2.2B

Dividend Yield

1.03%

Expense Ratio

0.39%

Top Holdings

FSLR

8.35%

600900.SS

7.53%

NXT

7.07%

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The iShares Global Clean Energy ETF tracks an index of global companies involved in clean energy, including those that generate energy from solar, wind, and other renewable sources. The fund had over $2 billion in assets under management (AUM) across 105 holdings in mid-2026, led by the following five:

First Solar (FSLR +1.09%): 8.9% of the fund's holdings
Nextpower (NXT +1.06%): 7.8%
China Yangtze Power: 7.4%
Bloom Energy (BE -1.14%): 6.9%
Enphase Energy (ENPH +4.76%): 4.9%

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 over 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%. It also enables investors to generate some passive income from clean energy with a 1.1% trailing 12-month yield.

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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

(-0.12%) $-0.06

Current Price

$50.82

Key Data Points

AUM

$622M

Dividend Yield

0.16%

Expense Ratio

0.59%

Top Holdings

MPWR

8.85%

TSLA

8.03%

7.62%

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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 $661.5 billion in assets across 52 companies in mid-2026, led by the following five:

Monolithic Power Systems (MPWR -2.48%): 9.0%
First Solar: 7.9%
Tesla (TSLA +4.23%): 7.7%
Bloom Energy: 7.5%
ON Semiconductor (ON -3.58%): 6.7%

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 energy. Its holdings include companies focused on semiconductors (25.5%), renewable energy equipment (18.1%), automobiles (14.7%), alternative electricity (8.9%), specialty machinery (7.5%), electrical components (5.9%), diversified chemicals (5.1%), general mining (3.8%), and alternative fuels (1.8%).

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

(1.20%) $0.60

Current Price

$50.47

Key Data Points

AUM

$1.3B

Expense Ratio

0.70%

Top Holdings

FSLR

10.25%

NXT

9.31%

ENLT.TA

7.36%

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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, as well as install solar energy systems.

The ETF had $1.3 billion in AUM across 36 holdings as of mid-2026, led by the following five:

First Solar: 10.7%
Nextpower: 10.1%
Enlight Renewable Energy (ENLT -3.42%): 6.9%
Enphase Energy: 6.8%
HA Sustainable Infrastructure Capital (HASI +1.26%): 4.4%

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 (40.5% of its holdings are information technology companies, 31.3% are utilities, 23.9% are industrials, and 4.3% 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

(0.42%) $0.14

Current Price

$33.55

Key Data Points

AUM

$419M

Dividend Yield

1.41%

Expense Ratio

0.64%

Top Holdings

BETA

3.04%

DAR

2.30%

OPAL

2.23%

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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 $448.3 million in AUM across 71 holdings in mid-2026, led by the following five companies:

Beta Technologies (BETA -1.34%): 2.6%
Opal Fuels (OPAL -0.45%): 2.5%
Itron (ITRI +2.79%): 2.1%
Darling Ingredients (DAR -2.05%): 2.0%
Gentherm (THRM -1.26%): 2.0%

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 36.5%, information technology at 20.7%, materials at 15.1%, consumer discretionary at 13.6%, energy at 6.1%, utilities at 6.0%, and consumer staples at 2.1%).

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

(1.85%) $0.58

Current Price

$31.65

Key Data Points

AUM

$123M

Dividend Yield

0.70%

Expense Ratio

0.55%

Top Holdings

HASI

6.78%

ITRI

5.84%

RIVN

5.73%

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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 clean energy and related sectors. 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 $120 million in AUM across 37 holdings as of mid-2026, led by the following five:

HA Sustainable Infrastructure Capital: 6.2%
Rivian Automotive (RIVN +6.43%): 6.0%
Itron: 5.8%
Brookfield Renewable Partners (BEP +2.19%): 5.3%
Nortland Power (NPIFF -0.42%): 5.2%

The ETF offers fairly broad diversification. Theme allocations included solar (26.1%), electric vehicles (20.5%), wind (15.1%), energy management and storage (14.3%), hydro/geothermal (10.1%), bioenergy (7.6%), fuel cell/hydrogen (4.7%), energy (1.5%), and industrial (0.4%)

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

(-0.53%) $-0.98

Current Price

$182.78

Key Data Points

AUM

$12B

Dividend Yield

0.78%

Expense Ratio

0.56%

Top Holdings

SU.PA

9.05%

ETN

8.98%

JCI

8.52%

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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 $12.1 billion in AUM across 119 holdings as of mid-2026, led by the following five:

Eaton Corporation (ETN -1.54%): 9.2%
Schneider Electric (OTCMKTS:SBGSY): 9.2%
Johnson Controls (JCI -3.17%): 8.5%
ABB (NYSE:ABB): 7.8%
Quanta Services (PWR -2.69%): 7.7%

This ETF offers exposure to the following sectors: electrical components (33.1%), diversified industrials (12.5%), engineering and contracting services (9.4%), multi-utilities (8.6%), electric equipment control and filter (8.6%), conventional electricity (8.5%), semiconductors (5.2%), software (2.1%), telecommunications equipment (1.8%), and automobiles (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

(-0.21%) $-0.05

Current Price

$24.02

Key Data Points

AUM

$256M

Dividend Yield

0.98%

Expense Ratio

0.61%

Top Holdings

VWS.CO

10.45%

NDX1.DE

7.61%

ORSTED.CO

7.56%

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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 $273.4 million in AIM across 47 holdings in mid-2026, led by the following five:

Vestas Wind Systems: 8.8%
Orsted (DNNGY -1.00%): 7.6%
Nordex (OTC:NRDX.F): 7.3%
EDP Renovaveis (EDRVF -1.29%): 6.7%
Northland Power (NPIFF -0.42%): 5.8%

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%. It also offers some income with a trailing 12-month yield of 1%.

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 investors to earn 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.

Methodology: How these ETFs were chosen

Over a dozen ETFs focus specifically on clean energy, including those that offer broad exposure to the sector and those that focus on a specific aspect, such as wind or solar. I focused my search on the largest clean energy ETFs because they're at less risk for liquidation or manipulation. I also sought out those with lower expense ratios. These seven stood out.

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 (with a sixfold 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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Investing in 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

Methodology: How these ETFs were chosen

Should you invest in clean energy ETFs?

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Investing in 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

Key Data Points

Key Data Points

Key Data Points

Benefits and risks of investing in clean energy ETFs

Methodology: How these ETFs were chosen

Should you invest in clean energy ETFs?

Best Consumer Staples Stocks to Buy in 2026 and How to Invest in Them

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

Investing in 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?

3. Invesco Solar ETF

Key Data Points

Key Data Points

Key Data Points

4. Invesco WilderHill Clean Energy ETF

5. ALPS Clean Energy ETF

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