Top Solar Energy ETFs
Solar energy ETFs invest in stocks of companies specializing in solar energy generation and distribution, solar system construction and installation, solar material and component manufacturing. The table includes only relevant data and will allow you to track the values of the best clean energy exchange-traded funds.
Why Do You Need Solar and Other Clean Energy ETFs?
Energy sector is among the largest global industry sectors. Conventional energy sources are exhaustible. Energy production from fossil fuels release much CO2 and other greenhouse gases, which adds to climate change. At the same time, clean energy is becoming more affordable. As a result, solar and other renewable energy companies gain more popularity both in terms of addressing environmental impact and investing money.
While buying individual stocks of a particular company is too risky, exchange-traded funds can be an attractive option as they offer diversified portfolios and are relatively cheap. These are a kind of investment funds tracking the performance of stock market indices, which allows you to buy a considerable basket of individual stocks at once.
Renewable energy ETFs are such exchange-traded funds that invest in clean and alternative energy firms. As you have already understood, solar ETFs buy stocks of companies specializing in solar energy.
Top Solar and Renewable Energy ETFs to Invest In
First of all, keep it in mind that even though a few clean energy funds have already shown considerable gains, the sector is still new and volatility can be rather high. A couple of factors to take into consideration while choosing an ETF to buy is how lasting its tracking history is and AUM value.
There is a large number of solar and renewable ETFs and, if you are a newbie, it can be too challenging to choose the ones worth your attention. So, let’s take a closer look at a few of the worthy clean energy ETFs together.
iShares Global Clean Energy (ICLN)
AUM: US$344M. The fund was launched on the 24th of April, 2008. It has an expense ratio of 0.47%. The underlying index is the S&P Global Clean Energy Index, including clean energy firms worldwide. The ETF’s portfolio consists of 33 most liquid firms mostly involved in wind and solar sectors.
Invesco Solar (TAN)
AUM: US$543.3M. The fund was launched on the 15th of April, 2008. The fund has an expense ratio of 0.7%, which put it among the most expensive ETFs in clean energy sector. At the same time, it is among the largest clean energy ETFs (even though it concentrates on a single sector). The index tracked is the MAC Global Solar Energy Index, consisting of multi-cap solar companies across the globe. The fund’s portfolio comprises 24 holdings specialized in all spheres of solar energy industry, the top of which are First Solar, Solaredge Technologies, and Enphase Energy.
Invesco WilderHill Clean Energy ETF (PBW)
AUM: US$299.7M. Expense ratio: 0.7%. The fund was launched on the 3rd of March, 2005. The index under track is the WilderHill Clean Energy Index, which includes US-listed firms specializing in cleaner energy and conservation. The mid-cap ETF’s portfolio is rather diverse, the largest of its 40 holdings are Tesla, Ballard Power Systems, and NIO.
First Trust Nasdaq Clean Edge Green Energy (QCLN)
AUM: US$228.5M. The fund was launched on the 14th of February, 2007. Having an expense ratio of 0.6%, it is one of the cheapest and most liquid ETFs in the sector. The underlying index is the NASDAQ Clean Edge Green Energy Index, including Canada- and US-listed clean energy firms. The largest holdings on the ETF’s 41-holding portfolio are TSLA, ENPH, and BEP.
ALPS Clean Energy (ACES)
AUM: US$148.63M. Expense ratio: 0.65%. Launched on the 29th of June, 2018, the fund is one of the youngest. It boasts one of the most diverse portfolios, which includes firms from almost every sector of the industry. The fund tracks the CIBC Atlas Clean Energy Index, including Canadian and US small-cap firms focused on alternative energy sector. The top holdings in the 31-stock portfolio are Tesla, Enphase Energy, and Ormat Technologies.
Invesco Global Clean Energy ETF (PBD)
AUM: US$53.31M. The date of launch is the 13th of June, 2007. The most expensive ETF in the sector, its expense ratio is 0.75%. The fund follows the WilderHill New Energy Global Innovation Index, and has a wide-range portfolio including 110 stocks.
GLOBAL X LITHIUM & BATTERY TECH (LIT)
AUM: US$ 397.74M. Expense ratio: 0.75%. The fund was established on the 22nd of July, 2010. The underlying index is Solactive Global Lithium Index, tracking lithium miners and battery makers throughout the world. The most famous holding in the ETF’s portfolio is Tesla. Another top holding is Albemarle.
All Solar energy ETFs:
- Invesco Solar ETF
- Invesco WilderHill Clean Energy ETF
- First Trust Nasdaq Clean Edge Green Energy ETF
- Invesco Cleantech™ ETF
- VanEck Vectors Low Carbon Energy ETF
- iShares Global Clean Energy ETF
- ALPS Clean Energy ETF
- Invesco Global Clean Energy ETF
- Global X YieldCo & Renewable Energy Income ETF
- First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund
- SPDR S&P Kensho Clean Power ETF
- GLOBAL X LITHIUM & BATTERY TECH ETF
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