First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN): Complete Beginner's Guide

What is First Trust NASDAQ Clean Edge Green Energy Index Fund?

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.

QCLN is managed by First Trust and has been available since 2007. With $1.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.58%, which means for every $10,000 you invest, you pay approximately $58 per year in management fees.

QCLN at a Glance — Key Metrics

Top 10 Holdings in QCLN

QCLN holds 65 different securities. Here are the largest positions that make up the core of this fund:

QCLN Performance History

Here's how QCLN has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

Beginner Suitability Score: 7.5/10

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

QCLN scores 7.5/10 because it has very low fees, can be more volatile than the broader market, focuses on 65 selected holdings, and has been available since 2007, giving it a proven track record.

How to Buy QCLN — Step by Step

1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
3. Search for "QCLN" — Use the search bar in your brokerage platform to find First Trust NASDAQ Clean Edge Green Energy Index Fund.
4. Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
5. Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

QCLN Sector Allocation

Here's how QCLN distributes its investments across different sectors of the economy:

Dollar Cost Averaging Into QCLN

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With QCLN's expense ratio of 0.58%, a $10,000 investment would lose approximately $4,759 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.

Pros and Cons of QCLN

Frequently Asked Questions