Clean energy exchange-traded funds (ETFs) are investment funds focused on holding the shares of companies investing in cleaner and alternative energy sources, such as wind, solar, hydrogen, battery storage, and electric vehicles (EVs). These companies will be major beneficiaries of growth in clean energy investment. Global clean energy investment needs to reach $4.5 trillion per year by 2030, more than double the 2023 total of $1.8 trillion.
The forecast suggests that governments and other entities need to significantly boost their investments in clean energy. 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 best to 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. An ETF reduces the risk of being right on the thesis but picking the wrong stock.
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 | $1.9 billion | |
First Trust NASDAQ Clean Edge Green Energy Index Fund | $560.9 million | |
Invesco Solar ETF | $934.8 million | |
Invesco WilderHill Clean Energy ETF | $622.6 million | |
ALPS Clean Energy ETF | $115.9 million | |
First Trust NASDAQ Clean Energy Smart Grid Infrastructure Index | $4.7 billion | |
First Trust Global Wind Energy ETF | $189.8 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 late 2025, led by the following five:
- First Solar (FSLR +0.13%): 9% of the fund's holdings
- Bloom Energy (BE +0.80%): 8.8%
- Nextpower (NXT -0.08%): 6.5%
- Iberdrola (FRA:IBE1): 6.3%
- Vestas Wind Systems (VWDRY -0.12%): 5.5%
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 0.39%.
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 late 2025, led by the following five:
- First Solar: 9.4%
- Tesla (TSLA +0.09%): 8.6%
- Rivian Automotive (RIVN -0.61%): 7.9%
- Bloom Energy: 6.9%
- ON Semiconductor (ON -0.09%): 6.8%
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 (20.9%), automobiles (18.4%), semiconductors (13.8%), alternative electricity (10.7%), specialty machinery (6.9%), diversified chemicals (6.4%), general mining (4.8%), electrical components (4.2%), and electronic components (2.4%).
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 late 2025, led by the following five:
- Nextpower: 11.8%
- First Solar: 11.7%
- Sunrun (RUN -4.20%): 6.5%
- GCL Technology Holdings (GCPEF +6.22%): 4.9%
- Enphase Energy: 4.9%
This ETF's focus on solar enables investors to invest in a basket of the 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 (46.1% of its holdings are information technology companies, 27.7% are industrials, 22.8% are utilities, and 3.4% are financials). That means it's an ideal ETF to make a directional bet on the upside of solar energy investment.
The fund charges a reasonable expense ratio of 0.71%.
4. Invesco WilderHill Clean Energy ETF
NYSEMKT: PBW
Key Data Points
The Invesco WilderHill Clean Energy ETF concentrates on companies listed on U.S. stock exchanges and engaged in advancing clean energy and conservation. The ETF had about 60 holdings in late 2025, led by the following five companies:
- Fluence Energy (FLNC +2.55%): 2.7%
- Canadian Solar (CSIQ -3.78%): 3.7%
- T1 Energy (TE +14.09%): 2.9%
- Sigma Lithium (SGML -5.51%): 2.6%
- Lithium Argentina (LAAC -2.01%): 2.5%
This ETF has an equal-weight strategy, investing a similar amount across a broad array of clean energy companies. This strategy allows investors to take a wide-ranging approach to clean energy. The fund holds companies involved with solar energy, EVs, geothermal energy, energy storage, wind energy, and climate tech. It offers some diversification across sectors (industrials at 41.6%, information technology at 18.3%, materials at 16.2%, consumer discretionary at 13.7%, utilities at 5%, energy at 4%, and consumer staples at 1.3%).
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 about 35 holdings as of late 2025, led by the following five:
- Albemarle (ALB +5.09%): 7%
- First Solar: 5.8%
- Nextpower: 5.7%
- Ormat (ORA +0.20%): 5.4%
- Eos Energy (EOSE -4.20%): 5.7%
The ETF offers fairly broad diversification across sectors and themes. Theme allocations included solar (28.4%), electric vehicles (21.7%), energy management and storage (14.9%), wind (11.3%), hydro/geothermal (10.4%), bioenergy (7.3%), fuel cell/hydrogen (4.2%), and industrial (1.5%).
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 late 2025, led by the following five:
- Schneider Electric (OTCMKTS:SBGSY): 8.2%
- Johnson Controls (JCI +0.02%): 8.2%
- ABB (NYSE:ABB): 8%
- National Grid (NGG -0.70%): 8%
- Eaton Corporation (ETN -0.38%): 7.4%
This ETF offers exposure to the following sectors: electrical components (32%), multi-utilities (12.1%), diversified industrials (10.8%), conventional electricity (10%), electric equipment control and filter (8.2%), engineering and contracting services (6.5%), semiconductors (4.6%), software (3%), automobiles (2.7%), and auto parts (2.2%).
The ETF has a 0.56% expense ratio.
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 about 45 holdings in late 2025, led by the following five:
- Vestas Wind Systems: 9.2%
- EDP Renovaveis (EDRVF +2.83%): 7.1%
- Nordex (NRDX.F -0.38%): 6.6%
- Ørsted (DNNG.Y -0.42%): 5.4%
- Enlight Renewable Energy (ENLT +0.58%): 5.4%
This ETF's focus on wind energy makes it ideal for those who want to invest specifically in the growth of the sector. It also offers broad geographic diversification and exposure to diversified companies with some wind activities to complement its wind energy pure plays.
The ETF has a reasonable expense ratio of 0.60%.
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 investing in specific sub-sectors of clean energy, such as wind energy stocks or solar energy stocks. Meanwhile, others invest more broadly in the clean energy trend.
- Cost: Investors need to determine whether the cost of the fund (ETF expense ratio) is worth it.
- Size of the fund: A small fund by AUM is at a higher risk of closing and returning investor capital.
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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