Clean energy exchange-traded funds (ETFs) are investment funds focused on holding the shares of companies investing in cleaner and alternative energy sources, like wind, solar, and battery storage. These companies will be major beneficiaries of growth in clean energy investment. Global clean energy investment needs to increase sixfold by 2030 from the 2022 level to mitigate the most significant effects of climate change, according to the Global Energy and Climate Outlook 2023.
The forecast suggests that governments and other entities need to significantly boost their investments in clean energy, such as wind, solar, hydrogen, battery storage, and electric vehicles (EVs). As a result, companies focused on green energy should prosper as more investment flows into the sector over the coming years.
But investors often face a dilemma when assessing a long-term investment trend. They must decide how to best position their portfolio to profit from the upside potential. They could choose to invest in a specific alternative energy stock. However, they risk being right about the investment thesis (clean energy investment will rise) but putting money into a company that underperforms the sector over the long term.
A potential solution to this problem is to invest in an exchange-traded fund (ETF) focused on clean energy. That should reduce the risk of being right on the thesis but picking the wrong green energy stock to express that view.
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 industry, while others focus on a single aspect of green energy investing. The different approaches give investors lots of ways to use ETFs to invest in clean energy.
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 | $1.5 billion | |
First Trust NASDAQ Clean Edge Green Energy Index Fund | $422.2 million | |
Invesco Solar ETF | $635.5 million | |
Invesco WilderHill Clean Energy ETF | $310.4 million | |
ALPS Clean Energy ETF | $91.4 million | |
First Trust NASDAQ Clean Energy Smart Grid Infrastructure Index | $3 billion | |
First Trust Global Wind Energy ETF | $187.3 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 mid-2025, led by the following five:
- First Solar (FSLR -0.94%): 9% of the fund's holdings.
- Vestas Wind Systems (VWDRY -0.63%): 6.3%
- Iberdrola (FRA:IBE1): 5.9%
- SSE (OTC:SSEZ.F): 5.8%
- EDP Energias de Portugal: 4.3%
This ETF owns a broad array of clean energy companies. These include businesses that manufacture components, such as 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 concentrate on producing renewable energy.
However, it's worth noting that the fund concentrates its investments at the top. Its 10 largest holdings make up almost 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 0.41%.
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 mid-2025, led by the following five:
- First Solar 8.2%
- ON Semiconductor (ON +0.35%): 7.8%
- Tesla (TSLA -0.87%): 6.5%
- MP Materials (MP -10.51%): 6.4%
- Rivian Automotive (RIVN +0.92%): 5.6%
This ETF also concentrates its investments among its largest holdings. However, it still offers investors diversified exposure to the clean energy sector, but with more of a focus on the electrification of transportation and the energy sector. Its holdings include companies focused on renewable energy equipment (19.5%), semiconductors (16.6%), automobiles (15.7%), alternative electricity (11%), general mining (6.7%), specialty machinery (5.3%), diversified chemicals (5%), electronic components (5%), specialty chemicals (5.2%), electrical components (3.3%), and gauges and meters (3.3%).
The fund has a reasonable ETF expense ratio of 0.56%.
3. Invesco Solar ETF
NYSEMKT: TAN
Key Data Points
NYSEMKT: PBW
Key Data Points
NYSEMKT: ACES
Key Data Points
NASDAQ: GRID
Key Data Points
7. First Trust Global Wind Energy ETF
NYSEMKT: FAN
Key Data Points
Related investing topics
Clean energy ETFs offer a broad approach to investing in the sector
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.
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