Best Clean Energy ETFs for 2026
Clean energy ETFs invest in companies advancing renewable power generation, energy storage, electric grid modernization, and related technologies. As global efforts to reduce carbon emissions intensify and government incentives like the Inflation Reduction Act continue to drive investment, the clean energy sector presents compelling long-term growth opportunities for investors willing to navigate its inherent volatility.
ICLN, the iShares Global Clean Energy ETF, is the largest and most recognized fund in this space, holding a diversified portfolio of global clean energy companies spanning solar, wind, and hydrogen. QCLN from First Trust focuses on clean energy companies listed on US exchanges and includes exposure to electric vehicle firms like Tesla, giving it a broader technology tilt. TAN from Invesco zeroes in specifically on solar energy companies, offering concentrated exposure to one of the fastest-growing renewable subsectors.
Clean energy stocks can be highly sensitive to interest rate movements because many clean energy projects are capital-intensive and rely on debt financing. Rising rates increase project costs and can compress valuations, which is why the sector experienced significant headwinds in 2023-2024. Understanding these dynamics is critical for timing entries and setting realistic expectations for your clean energy allocation.
How We Rank
ETFs are ranked by assets under management (AUM). Only ETFs with $50M+ in assets are included. Data is updated daily.
| # | Symbol | Fund Name | AUM |
|---|---|---|---|
| 1 | XLU | State Street Utilities Select Sector SPDR ETF | $24.64B |
| 2 | EMLP | First Trust North American Energy Infrastructure Fund | $3.95B |
| 3 | ICLN | iShares Global Clean Energy ETF | $2.14B |
| 4 | TAN | Invesco Solar ETF | $1.43B |
| 5 | PBW | Invesco WilderHill Clean Energy ETF | $508.6M |
| 6 | FAN | First Trust Global Wind Energy ETF | $232.7M |
| 7 | CNRG | State Street SPDR S&P Kensho Clean Power ETF | $194.2M |
| 8 | PBD | Invesco Global Clean Energy ETF | $181.4M |
| 9 | SMOG | VanEck Low Carbon Energy ETF | $134.5M |
| 10 | TPZ | Tortoise Electrification Infrastructure ETF | $129.1M |
| 11 | ACES | ALPS Clean Energy ETF | $116.4M |
| 12 | BLDX | Impax Global Infrastructure ETF | $104.6M |
| 13 | ITEQ | Amplify BlueStar Israel Technology ETF | $100.5M |
| 14 | FRNW | FIDELITY CLEAN ENERGY ETF | $62.6M |
What to Look For
Focus on the geographic mix — some clean energy ETFs are heavily international while others concentrate on US-listed firms. The expense ratio typically ranges from 0.40% to 0.60% in this category. Examine the sub-sector breakdown: does the fund focus on solar, wind, hydrogen, or a blend of all renewable technologies?
Liquidity matters here too, as some niche clean energy funds have lower volumes and wider spreads. Check the fund's sensitivity to interest rates and government policy changes, as both significantly affect clean energy company valuations and project economics.
Which Clean Energy ETFs Is Best for You?
ICLN is the most diversified option with global exposure across solar, wind, and other clean energy technologies. Its large AUM and strong volume provide excellent liquidity. The global tilt means you get exposure to European and Asian clean energy leaders alongside US firms, though this also introduces currency risk.
QCLN is appealing for investors who want clean energy exposure with a US focus and a dash of EV exposure. The inclusion of companies like Tesla and electric vehicle supply chain firms gives QCLN a unique profile that blends pure renewables with broader electrification themes. It tends to be more volatile but has delivered strong returns during clean energy rallies.
TAN is the pure-play solar bet. Solar is the fastest-growing and most cost-competitive renewable energy source, and TAN provides concentrated exposure to this trend. The flip side is higher volatility and greater sensitivity to policy changes that specifically affect solar installations and subsidies.