Your trusted source for investing success since 2007. Renowned for our market outlook reports and investing guides.
5 Biggest Clean Energy ETFs in 2023
With interest in ETFs on the rise, now may be the time for environmentally minded investors to think about clean energy ETFs.
Exchange-traded funds (ETFs) have been gaining popularity in North America in a wide range of industries, including the clean energy sector, whose appeal is rapidly increasing.
ETF inflows have hit record levels in recent years. In 2021, investment surpassed US$1 trillion for the first time to land at US$1.29 trillion for that year; that's compared to US$735.7 billion for 2020. The rising demand for these investment products spurred fund houses to launch more ETFs in 2021, and even to convert their existing mutual funds into ETFs.
While the global economic uncertainty brought on by catalysts such as inflation and Russia's war in Ukraine led to a 33 percent decline in ETF inflows for a total of US$856.16 billion in 2022, analysts are optimistic that 2023 will bring strong demand, with an estimated range of US$750 billion to US$1 trillion in ETF inflows.
ETFs have become so popular partially because they provide a safer way for investors to gain exposure to various industries while avoiding the volatility that comes with investing in individual stocks.
Below is a look at the five top clean energy ETFs to consider, ranked by total assets. All numbers and figures were gathered using ETFdb.com and were current as of March 8, 2023. Read on to learn more.
1. iShares Global Clean Energy ETF (NASDAQ:ICLN)
Total assets: US$4.94 billion
The iShares Global Clean Energy ETF was created on June 24, 2008, and has a large portfolio of domestic and international stocks.
An analyst report on the ETF states that it "likely doesn't deserve" a large weighting in an investor's long-term portfolio. It suggests that the fund could be useful as a "satellite holding" that looks at a fraction of the market that is often overlooked by less focused ETFs.
Three of the iShares Global Clean Energy ETF's top-weighted holdings include: First Solar (NASDAQ:FSLR) with a 8.23 percent weighting, Enphase Energy (NASDAQ:ENPH) at 7.94 percent and SolarEdge Technologies (NASDAQ:SEDG) at 7.27 percent.
2. First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN)
Total assets: US$1.76 billion
The First Trust NASDAQ Clean Edge Green Energy Index Fund, which officially came into existence on February 14, 2007, is a "unique member" of the alternative energy category, according to ETFdb.com. Why? Because it invests in companies that have interests in different green energy subsectors, such as biofuels, solar energy and advanced batteries.
ETFdb.com also states that because of this ETF's focus, it may be appealing to investors looking for broader exposure in the alternative energy sector. Three of its highest-weighted holdings are ON Semiconductor (NASDAQ:ON) at 9.34 percent, Tesla (NASDAQ:TSLA) at 8.6 percent and Enphase Energy at 6.24 percent.
3. Invesco WilderHill Clean Energy ETF (ARCA:PBW)
Total assets: US$811.62 million
Begun on March 3, 2005, the Invesco WilderHill Clean Energy ETF focuses on clean energy companies using green and renewable energy and technologies that help with cleaner energy.
Currently this ETF's top-weighted holdings include Navitas Semiconductor (NASDAQ:NVTS) at 2.27 percent, Wallbox (NYSE:WBX) at 2.18 percent and QuantumScape (NYSE:QS) at 1.9 percent.
4. ALPS Clean Energy ETF (ARCA:ACES)
Total assets: US$547.35 million
The ALPS Clean Energy ETF was formed fairly recently, on June 29, 2018. The majority of the companies in this ETF are based in North America. The top three holdings of the ETF are First Solar, Tesla and Brookfield Renewable Partners (TSX:BEP.UN,NYSE:BEP), with weightings of 7.57 percent, 5.73 percent and 5.5 percent, respectively.
5. SPDR S&P Kensho Clean Power ETF (ARCA:CNRG)
Total assets: US$363.96 million
The SPDR S&P Kensho Clean Power ETF was launched in October 2018 and tracks companies whose products and services are driving innovation in the clean energy sector, including the areas of solar, wind, geothermal and hydroelectric power.
The fund currently has 44 holdings. The top three by weight are Generac (NYSE:GNRC) at 3.44 percent, First Solar at 3.4 percent and Canadian Solar (NASDAQ:CSIQ) at 3.16 percent.
This is an updated version of an article originally published by the Investing News Network in 2018.
Don't forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
- Solar Energy Stocks: 6 Biggest US Companies in 2022 ›
- 5 Renewable Energy Stocks on the TSX ›
- Top 3 Canadian Cleantech Stocks of 2022 ›
- 6 US Biofuel Stocks (Updated 2023) ›
- How to Invest in Cleantech | INN ›
DOWNLOAD FREE REPORTS
BROWSE COMPANIES BY SECTOR
- Agriculture Investing
- Phosphate Investing
- Potash Investing
- Base Metals Investing
- Copper Investing
- Iron Investing
- Lead Investing
- Nickel Investing
- Zinc Investing
- Battery Metals Investing
- Cobalt Investing
- Graphite Investing
- Lithium Investing
- Manganese Investing
- Vanadium Investing
- Critical Metals Investing
- Magnesium Investing
- Rare Earth Investing
- Scandium Investing
- Tantalum Investing
- Tellurium Investing
- Tungsten Investing
- Energy Investing
- Oil and Gas Investing
- Uranium Investing
- Gem Investing
- Diamond Investing
- Industrial Metals Investing
- Aluminum Investing
- Chromium Investing
- Coal Investing
- Molybdenum Investing
- Tin Investing
- Precious Metals Investing
- Gold Investing
- Palladium Investing
- Platinum Investing
- Silver Investing
- 3D Printing Investing
- Bitcoin Investing
- Blockchain Investing
- Cleantech Investing
- Cloud Investing
- Data Investing
- Emerging Tech Investing
- Artificial Intelligence Investing
- Mobile Investing
- Robotics Investing
- Fintech Investing
- Gaming Investing
- Esports Investing
- Nanoscience Investing
- Graphene Investing
- Nanotech Investing
- Security Investing
Featured Cleantech Investing Stocks