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

Last updated: March 2026First Trust Clean Energy

Expense Ratio

0.58%

AUM

$1.0B

Dividend Yield

0.30%

Inception

2007

Beginner Score

7.5/10

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

Expense Ratio0.58%
Total Holdings65
P/E Ratio35.0
Beta1.35
Dividend Yield0.30%
AUM$1.0B
Inception Year2007
IssuerFirst Trust

Top 10 Holdings in QCLN

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

#CompanyTickerWeight
1Tesla Inc.TSLA9.00%
2ON SemiconductorON7.00%
3Enphase Energy Inc.ENPH6.00%
4First Solar Inc.FSLR6.00%
5Rivian AutomotiveRIVN5.00%
6Albemarle Corp.ALB4.00%
7Lucid Group Inc.LCID4.00%
8Plug Power Inc.PLUG3.50%
9ChargePoint HoldingsCHPT3.00%
10Sunrun Inc.RUN3.00%

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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:

YTD

-4.00%

1 Year

-8.00%

3 Year

-12.00%

5 Year

6.00%

10 Year

8.00%

Beginner Suitability Score: 7.5/10

Great for Beginners

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.

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):

Monthly10 Years20 Years30 Years
$100/mo$18,417$59,295$150,030
$250/mo$46,041$148,237$375,074
$500/mo$92,083$296,474$750,148

*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.

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Pros and Cons of QCLN

Pros

  • Broader clean technology exposure that includes EVs, batteries, and semiconductors
  • Tesla and EV holdings differentiate it from solar-only or wind-only funds
  • One of the longest-running clean energy ETFs with a track record since 2007
  • US-listed companies provide transparency and familiar regulatory oversight

Cons

  • Heavy Tesla weighting means one stock can dominate fund performance
  • Many smaller holdings are unprofitable early-stage companies with high burn rates
  • Higher expense ratio compared to broad market index funds

Frequently Asked Questions

Is QCLN a good ETF for beginners?

QCLN has a Beginner Suitability Score of 7.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.

What is the expense ratio of QCLN?

QCLN has an expense ratio of 0.58%. This means for every $10,000 you invest, you pay approximately $58 per year in fees. This is considered very low and cost-efficient.

How much money do I need to invest in QCLN?

You can invest in QCLN with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.

Does QCLN pay dividends?

Yes, QCLN pays dividends with a current yield of approximately 0.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.

What are the top holdings in QCLN?

The top holdings in QCLN include Tesla Inc. (9.00%), ON Semiconductor (7.00%), Enphase Energy Inc. (6.00%), and more. The fund holds 65 total positions, providing focused exposure to selected companies.