5 Best Clean Energy ETFs to Buy in Q2 2025

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An exchange-traded fund, or ETF, offers an easy route into owning a broad selection of stocks that operate in the renewable energy industry.

There are more available now than ever before and this guide helps you narrow down your options to the very best renewable energy ones. 

What are the top renewable energy ETFs to buy?

Our choices for the best ETFs to invest in right now are in the table below. You can find them through your broker simply by searching for the ETF symbol, or you can scroll down to read more about why each one was chosen.

1. iShares Global Clean Energy ETF (ICLN)

• Assets: $2.12 billion
• Expense ratio: 0.41%
• Year of inception: 2008
• 5-year performance: 25%
• Dividend yield: 1.64%

The iShares fund is the largest renewable energy ETF on the market at the moment and manages more than $2.12bn in assets. It holds stocks in companies from all over the world that generate wind and solar power in particular, along with other renewable energy sources.

The iShares Global Clean Energy ETF is made up of some of the biggest companies in the clean energy industry. Most of these companies are utilities followed by technology, industrials, and basic materials.

The ICLN ETF holds some well-known companies like First Solar, Enphase Energy, Iberdrola, Consolidated Edison, and Vestas Wind Systems.

While these companies did well during the Covid-19 pandemic, they then tumbled as interest rates jumped. In most cases, clean energy projects tend to underperform in high rates environment. For example, Orsted scaled down its investments in a major New Jersey project last year. 

Therefore, if the clean energy industry recovers, there is a likelihood that the ICLN ETF will bounce back.

2. Invesco WilderHill Clean Energy ETF (PBW)

• Assets: $289 million
• Expense ratio: 0.66%
• Year of inception: 2005
• 5-year performance: -32%
• Dividend yield: 3.34%

The Wilderhill Clean Energy ETF takes a slightly different approach to most renewable funds. Rather than loading up its holdings with companies that produce solar or wind energy, it spreads the money out almost equally across 74 different stocks from across the globe. The top ten holdings in the fund account for about 22.7% of the total fund.

The ETF is made up of some of the biggest companies in the industry. Most of them are industrials, technology, consumer cyclical, and utilities. Some of the most notable companies in the fund are companies like Enovix, First Solar, American Superconductor, Ameresco, and Bloom Energy.

The main risk for investing in this fund is that it is a bit expensive with an expense ratio of 0.66%. It also had a long track record of underperforming the market as it drops by over 32% in the past five years.

3. SPDR S&P Kensho Clean Power ETF (CNRG)

• Assets: $180 million
• Expense ratio: 0.45%
• Year of inception: 2018
• 5-year performance: 58%
• Dividend yield: 1.62%

This ETF is made up of 45 companies, with the top ten of them accounting for 30% of the fund. The biggest companies in the fund are the likes of Sunnova Energy, NextEra Energy, Avangrid, and GE Vernova.  It does that by tracking the S&P Kensho Clean Power Index that focuses on companies in sectors like solar, wind, geothermal, and hydro. 

The biggest segment in the fund are electrical components and equipment, electric utilities, renewable electricity, and semiconductor materials. Most of these companies are from the United States, China, Canada, and Brazil. The fund’s top benefit is that it has a low expense ratio of about 0.45% and has a dividend yield of 1.62%.

4. Invesco Solar ETF (TAN)

• Assets: $960 million
• Expense ratio: 0.67%
• Year of inception: 2008
• 5-year performance: 42%
• Dividend yield: 0.12%

Invesco Solar is the second largest ETF on the market. As its name suggests, it focuses purely on solar energy and only owns stocks in companies that produce or supply solar power.

First Solar, the biggest company in the fund, is one of the largest solar firm in the United States with a market cap of over $22 billion. It accounts for about 10% of the entire Exchange Traded Fund (ETF).

The other company is Enphase Energy, which accounts for about 7.7% of the fund. Some of the top companies in the fund are Sunrun, GCL Technology, Xinyi Solar, and Encavis. The benefit of this fund is that it gives you access to companies in countries that are hard to invest in like China and Japan.

5. First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)

• Assets: $692 million
• Expense ratio: 0.59%
• Year of inception: 2007
• 5-year performance: 61%
• Dividend yield: 0.84%

The First Trust fund is another that only invests in companies that list in the United States. Those companies can either be ones that produce the energy itself or ones that distribute or install the technology.

The weighting of the fund is what makes this a bit different to the other options. It puts more money into larger companies, rather than balancing it out as many other funds do. That means that Tesla is its largest holding and electric vehicles in general play an outsized role in this ETF.

However, that means it offers yet another different way to invest in clean energy. The weighting is capped so it’s never too reliant on the biggest companies (the largest holding is 10% of the total), and it means you can invest in this along with other ETFs to get exposure to different sectors of the renewable energy industry.

Where to buy the best renewable ETFs

In order to get shares in any ETF you need to sign up for an online broker. ETFs trade just like regular stocks do, with their own ticker symbol (that you can find in the table above), and once you have an account you can buy or sell them at any time. These brokers are the best ones around at the moment, where you can get started in just a few minutes.

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Best clean energy ETFs

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What is a clean energy ETF?

An exchange traded-fund that holds shares in companies that play a role in the research, development, manufacturing, or supply of clean energy, or related products and services. In practice those companies can vary wildly, from ones that mine raw materials to ones that make the parts to power electric vehicles.

If you’re interested in investing in clean energy ETFs, you may also want to consider investing in other renewable energy companies, such as:

• Top green energy stocks
• Top ESG stocks

Are clean energy ETFs a good investment?

They almost certainly will be in the long term. There’s little doubt that clean energy is going to play an ever-increasing role in our lives and an ETF offers a way of investing in the industry rather than trying to pick the right company.

In the short term, however, these ETFs can be quite volatile. That volatility has mostly seen them produce incredible results of late but renewables still make up a relatively small part of the overall energy market. Until it becomes more established and results replace hype, the ETFs might see more dramatic price swings than we would like.

Ultimately, that means it’s down to how quickly you want to see returns on your investment. If you’re willing to accept the risk of some volatility in the near term, then all you need to do is pick a broker and sign up to get started with one of the ETFs on this page.

Methodology: How we choose the best clean energy ETFs

At Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.

• Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
• ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
• Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
• Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
• Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.