Best Clean Energy ETFs in 2026

How We Chose These ETFs

Selecting the right ETFs for clean energy investors requires a careful evaluation of multiple factors. We analyzed dozens of funds across the industry and narrowed our recommendations based on the following criteria. Each factor was weighted according to its importance for investors in this specific category, ensuring that our picks are truly optimized for your goals.

1. Exposure to the — Exposure to the multi-decade global energy transition megatrend
2. Diversification across solar, — Diversification across solar, wind, hydrogen, and battery storage
3. Government policy support — Government policy support through subsidies and mandates worldwide
4. Potential for significant — Potential for significant long-term growth as renewable adoption accelerates

We also factored in our proprietary Beginner Suitability Score, which evaluates each fund on a 1-to-10 scale considering expense ratios, volatility (beta), diversification (holdings count), dividend history, and track record length. Funds that score consistently high across these dimensions earned a spot on our list.

1. iShares Global Clean Energy ETF (ICLN) — Best Overall

BlackRock • Clean Energy

ICLN invests in companies worldwide that produce energy from solar, wind, and other renewable sources. It is one of the most popular clean energy ETFs, giving investors exposure to the global transition away from fossil fuels. The fund holds a mix of utility-scale renewable producers and clean energy technology firms across developed and emerging markets.

iShares Global Clean Energy ETF earns its spot as our best overall pick because it delivers on the metrics that matter most for clean energy investors. With an expense ratio of just 0.40%, you keep more of your returns working for you over time. The fund manages $3.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, ICLN has delivered a total return of 4.00%, providing steady growth for investors who stayed the course through market volatility. The fund holds 100 individual securities, giving you solid diversification across a meaningful number of positions. Its beta of 1.25 indicates that the fund is somewhat more volatile than the market as a whole, offering higher upside potential but also larger drawdowns during corrections.

ICLN currently pays a dividend yield of 0.80%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2008, ICLN has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 8/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

2. Invesco Solar ETF (TAN) — Best for Growth

Invesco • Solar Energy

TAN focuses specifically on companies in the solar energy industry, including manufacturers of solar panels, inverters, and installation firms. It provides concentrated exposure to one of the fastest-growing segments of the clean energy market. This fund suits investors who believe solar power will play a dominant role in the future global energy mix.

Invesco Solar ETF earns its spot as our best for growth pick because it delivers on the metrics that matter most for clean energy investors. With an expense ratio of just 0.67%, you keep more of your returns working for you over time. The fund manages $1.5B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, TAN has delivered a total return of 2.00%, providing steady growth for investors who stayed the course through market volatility. The fund holds 45 individual securities, giving you focused exposure to a curated selection of holdings. Its beta of 1.40 indicates that the fund is somewhat more volatile than the market as a whole, offering higher upside potential but also larger drawdowns during corrections.

TAN currently pays a dividend yield of 0.40%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2008, TAN has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 7/10 (Moderate), reflecting its solid fundamentals with some factors that newer investors should be aware of.

3. First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) — Best for Diversification

First Trust • Clean Energy

QCLN tracks US-listed clean energy companies across solar, wind, electric vehicles, and energy storage technologies. Unlike purely renewable-focused funds, it includes EV makers like Tesla, giving it broader clean technology exposure. This fund bridges the gap between traditional clean energy ETFs and broader technology innovation funds.

First Trust NASDAQ Clean Edge Green Energy Index Fund earns its spot as our best for diversification pick because it delivers on the metrics that matter most for clean energy investors. With an expense ratio of just 0.58%, you keep more of your returns working for you over time. The fund manages $1.0B in total assets, which speaks to its popularity and ensures strong liquidity with tight bid-ask spreads when you buy or sell shares.

Over the past five years, QCLN has delivered a total return of 6.00%, providing steady growth for investors who stayed the course through market volatility. The fund holds 65 individual securities, giving you focused exposure to a curated selection of holdings. Its beta of 1.35 indicates that the fund is somewhat more volatile than the market as a whole, offering higher upside potential but also larger drawdowns during corrections.

QCLN currently pays a dividend yield of 0.30%, providing investors with a stream of regular income on top of capital appreciation. Dividends are typically distributed quarterly and can be automatically reinvested through most major brokerages, accelerating the compounding process. With a track record stretching back to 2007, QCLN has weathered multiple market cycles including the 2008 financial crisis and the 2020 pandemic, proving its resilience. Our Beginner Suitability Score rates it 7.5/10 (Great for Beginners), reflecting its excellent combination of low costs, manageable volatility, and broad diversification.

Comparison Table

Here is a side-by-side comparison of all 3 ETFs in our clean energy category. This table highlights the key metrics you should evaluate when choosing between these funds. Pay close attention to expense ratios and beginner scores, as these are the most impactful factors for long-term investment success.

*Beginner Score is calculated based on expense ratio, beta, holdings count, dividend yield, and fund inception year. Past performance does not guarantee future results.

Common Mistakes Clean Energy Investors Make

Even with a solid selection of ETFs, investors in the clean energy category can undermine their results by falling into avoidable traps. Understanding these common pitfalls will help you stay on track and avoid costly errors that could set back your financial progress by years or even decades.

• 1

  Investing at peak hype: Investing at peak hype when clean energy valuations are stretched

• 2

  Not recognizing that clean: Not recognizing that clean energy stocks are significantly more volatile than traditional utilities

• 3

  Concentrating in a single: Concentrating in a single clean energy subsector like solar

• 4

  Underestimating the impact of: Underestimating the impact of interest rates on capital-intensive renewable projects

The best defense against these mistakes is a simple, written investment plan that you commit to following regardless of market conditions. Define your target allocation, set up automatic contributions, and schedule a review only once or twice per year. This removes emotion from the process and keeps you focused on long-term wealth building rather than short-term noise.

Frequently Asked Questions