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Alternative Energy ETFs?

Alternative Energy ETFs?

Alternative energy ETFs pool stocks from companies involved in clean energy such as solar, wind, hydro, hydrogen fuel cells, batteries, and smart grid technology. These funds are ideal if you want broad exposure to climate-friendly energy trends without selecting individual companies.

Popular ETFs Worth Considering

1. iShares Global Clean Energy ETF (ICLN)

Stock market information for iShares Global Clean Energy ETF (ICLN)

  • iShares Global Clean Energy ETF is a fund in the USA market.
  • The price is 13.97 USD currently with a change of 0.06 USD (0.00%) from the previous close.
  • The latest open price was 13.91 USD and the intraday volume is 2406549.
  • The intraday high is 14.0 USD and the intraday low is 13.885 USD.
  • The latest trade time is Saturday, July 26, 05:15:00 +0500.
  • Ticker: ICLN
  • Expense ratio: ~0.41%
  • Assets under management: ~$1.3–2 billion
  • Diversified exposure to global clean energy players (solar, wind, hydro)
  • Top holdings: Enphase Energy, First Solar, Iberdrola, Vestas
  • Broad geographic mix (~40% U.S., rest spread globally) (Investopedia, GOBankingRates)
  • One-year return: ~–14% (2025 downturn) (Investopedia)

2. Invesco Solar ETF (TAN)

Stock market information for Invesco Solar ETF (TAN)

  • Invesco Solar ETF is a fund in the USA market.
  • The price is 39.11 USD currently with a change of -0.05 USD (-0.00%) from the previous close.
  • The latest open price was 39.1 USD and the intraday volume is 187773.
  • The intraday high is 39.16 USD and the intraday low is 38.73 USD.
  • The latest trade time is Saturday, July 26, 05:19:00 +0500.
  • Ticker: TAN
  • Expense ratio: ~0.67–0.69%
  • Focus: Solar sector only—manufacturers, developers, installers
  • Top holdings: First Solar, Enphase Energy, SolarEdge, Sunrun
  • Typical annual return: ~16.7% over 10-year average (Reddit, Yahoo Finance)
  • More concentrated (Top 10 holdings = ~63%) (Yahoo Finance)

3. First Trust Nasdaq Clean Edge Green Energy ETF (QCLN)

  • Ticker: QCLN
  • Expense ratio: ~0.59%
  • Focus: U.S.-based clean energy firms (tech, materials, EV infrastructure)
  • Top holdings include Tesla (~9%), Plug Power (~7.5%)
  • Highly concentrated (~54% in top 10 holdings) and mostly U.S.-focused (~84%) (Reddit)

4. Invesco WilderHill Clean Energy ETF (PBW)

  • Ticker: PBW
  • Expense ratio: ~0.62–0.70%
  • Equal-weighted fund, capping individual stocks at ~4%—diversified across solar, wind, EV supportive technology
  • Approximately 58–60 holdings, mostly U.S.-based (~85%)
  • Excellent recent performance (three-year returns around 70%, 13-week returns ~77%) (The Motley Fool, Reddit)

5. ALPS Clean Energy ETF (ACES)

  • Ticker: ACES
  • Expense ratio: ~0.55%
  • Focus: North American clean energy and cleantech companies (U.S. and Canada)
  • Top holdings include Rivian, Plug Power, First Solar, Enphase
  • Nearly 50% concentration in top 10 positions (The Motley Fool)

6. First Trust Global Wind Energy ETF (FAN)

  • Ticker: FAN
  • Expense ratio: ~0.60%
  • Focus: Pure-play wind energy globally
  • Top geographies include Denmark, Spain, Canada; minimal U.S. exposure (~10%)
  • Balanced holdings mix (~54% concentrated among top 10) (Reddit, Reddit)

Comparison Table

ETF (Ticker)Focus AreaExp. RatioTop HoldingsGeographic MixNotes
ICLNBroad clean energy (global)~0.41%Enphase, First Solar, Vestas~40% U.S., rest globalMost diversified, low cost
TANSolar only~0.67%First Solar, Enphase~60–70% U.S. dominantSector-specific, high past growth
QCLNU.S. clean-tech & EVs~0.59%Tesla, First Solar, Plug~84% U.S.Tech-heavy, concentrated holdings
PBWBroad clean energy (equal weight)~0.62%~60 small & mid caps~85% U.S.Equal-weight avoids mega-cap bias
ACESNorth America clean energy~0.55%Rivian, Plug Power, etc.~80% U.S., 20% CanadaRegional diversification
FANWind energy (global)~0.60%Vestas, Orsted, NordexEurope heavy, small U.S. slicePure wind-sector fund

Investor Commentary (Reddit Insights)

  • Reddit users often recommend ICLN for its balanced and global exposure.
  • PBW praised for diversity, non-concentration, and strong recent returns.
  • QCLN and TAN favored by investors wanting more focused exposure (EV/solar-heavy).
  • FAN recommended for those bullish specifically on wind energy innovations. (Reddit, Invezz, Walletinvestor.com, Reddit, Investopedia, GOBankingRates, Reddit)

Recent Market Trends

  • As of early 2025, many clean energy ETFs have underperformed due to rising interest rates, supply disruptions, and market rotations into commodities and traditional energy. Some, however, have recently outpaced oil & gas ETFs amid shifting sentiment. (reuters.com)
  • Increases in global infrastructure and climate policy investments suggest long-term potential especially in solar, wind, hydrogen, and grid tech. (Investopedia, MoneyWeek)

Final Take: Choosing the Right ETF for You

  • For broad, low-cost global exposure: Choose ICLN (lowest expenses, diverse holdings)
  • For solar-specific investing: Choose TAN
  • For U.S.-based clean-tech with EV exposure: Choose QCLN
  • For maximum diversification and equal-weight holdings: Choose PBW
  • For regional (North America) exposure: Choose ACES
  • For wind-specific investment strategy: Choose FAN

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