7 Clean Energy ETFs to Buy Now

Are you looking for a way to invest in the future of clean energy? Do you want to support companies that are developing innovative solutions to reduce greenhouse gas emissions and combat climate change? If so, you might want to consider adding some clean energy ETFs to your portfolio.

Clean energy ETFs are exchange-traded funds that track the performance of a basket of stocks in the renewable energy sector. These include companies that produce, distribute, or use solar, wind, hydro, geothermal, biomass, or other forms of clean energy. By investing in clean energy ETFs, you can gain exposure to a fast-growing and socially responsible industry, while also diversifying your portfolio and reducing your risk.

But with so many clean energy ETFs to choose from, how do you decide which ones are the best for you? To help you out, we have compiled a list of seven clean energy ETFs that we think are worth buying now. These ETFs have strong track records, low fees, high liquidity, and broad coverage of the clean energy sector. Here they are:

  • Invesco Solar ETF (TAN): This is the largest and most popular ETF that focuses on the solar industry. It holds 36 stocks of companies that manufacture solar panels, equipment, and components, as well as those that provide installation and financing services. Some of its top holdings include Enphase Energy, SolarEdge Technologies, Sunrun, and First Solar. The ETF has a five-year annualized return of 34.5% and an expense ratio of 0.69%.
  • iShares Global Clean Energy ETF (ICLN): This is a diversified ETF that invests in companies that produce energy from solar, wind, and other renewable sources. It holds 82 stocks from various countries, with the U.S., China, and Denmark being the top three. Some of its top holdings include Plug Power, NextEra Energy, Orsted, and Xinyi Solar. The ETF has a five-year annualized return of 21.4% and an expense ratio of 0.46%.
  • First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN): This is an ETF that tracks an index of companies that are involved in the clean energy industry, as well as those that provide technologies and services that enhance energy efficiency and reduce environmental impact. It holds 51 stocks from various sectors, such as semiconductors, industrials, utilities, and consumer discretionary. Some of its top holdings include Tesla, NIO, Enphase Energy, and Generac Holdings. The ETF has a five-year annualized return of 38.4% and an expense ratio of 0.6%.
  • SPDR S&P Kensho Clean Power ETF (CNRG): This is an ETF that follows an index of companies that are driving innovation in the clean power sector. It holds 41 stocks from various industries, such as renewable energy production, energy storage, smart grid, and electric vehicles. Some of its top holdings include Plug Power, Enphase Energy, Ballard Power Systems, and Blink Charging. The ETF has a one-year return of 101.8% and an expense ratio of 0.45%.
  • ALPS Clean Energy ETF (ACES): This is an ETF that invests in companies that are advancing the transition to a low-carbon economy. It holds 38 stocks from various segments of the clean energy sector, such as solar, wind, hydroelectricity,
    biomass, geothermal, electric vehicles, LED lighting,
    and smart grid. Some of its top holdings include Enphase Energy,
    Brookfield Renewable Partners,
    TPI Composites,
    and SunPower.
    The ETF has a one-year return of 87.9% and an expense ratio of 0.65%.
  • Invesco WilderHill Clean Energy ETF (PBW): This is an ETF that tracks an index of companies that are engaged in the business of cleaner energy and conservation. It holds 58 stocks from various industries,
    such as renewable energy equipment,
    alternative fuels,
    energy efficiency,
    and advanced materials.
    Some of its top holdings include
    QuantumScape,
    Array Technologies,
    Livent,
    and Sunworks.
    The ETF has a one-year return of 170% and an expense ratio of 0.7%.
  • VanEck Vectors Low Carbon Energy ETF (SMOG): This is an ETF that invests in companies that are involved in low carbon energy production or consumption.
    It holds 30 stocks from various sectors,
    such as renewable energy generation,
    energy storage,
    electric vehicles,
    and fuel cells.
    Some of its top holdings include
    Tesla,
    NextEra Energy,
    Orsted,
    and Iberdrola.
    The ETF has a one-year return of 66% and an expense ratio of 0.63%.

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