6 Best-Performing Clean Energy ETFs for November 2024
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The clean energy market is new, and there’s no way to know what companies will be the belles of the ball. But rather than try to predict which specific companies will prosper, you can invest in clean energy ETFs and gain wider exposure to the industry as a whole.
What are clean energy ETFs?
Clean energy ETFs are exchange-traded funds that invest in stocks in the alternative energy sector, which might include solar energy, wind, hydroelectric and geothermal companies. Like other types of funds, clean energy ETFs can easily diversify your portfolio. ETFs also tend to be less expensive than mutual funds.
Best-performing clean energy ETFs
Below is a list of the best-performing clean energy ETFs from the past year.
Ticker | Company | Performance (Year) |
|---|---|---|
NBET | Neuberger Berman Carbon Transition Infrastructure ETF | 43.51% |
NETZ | TCW Transform Systems ETF | 43.17% |
TEMP | JPMorgan Climate Change Solutions ETF | 40.49% |
GRID | First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund | 39.89% |
PABU | iShares Paris-Aligned Climate MSCI USA ETF | 36.71% |
SPYX | SSGA SPDR S&P 500 Fossil Fuel Free ETF | 36.34% |
Source: Finviz. Data is current as Nov, 1, 2024, and is intended for informational purposes only, not for trading purposes.
» Excited about clean energy ETFs? Here are the best online brokers for ETF investing
Clean energy ETFs in detail
When investigating clean energy ETFs, keep in mind that expense ratios should be weighed against the fund's overall return net of fees. If multiple years of returns can justify the fee, a larger fee may be less impactful than it seems.
Need a little more information? Here are three of the biggest clean energy ETFs in terms of assets under management.
Invesco Solar ETF (TAN)
The Invesco Solar ETF has a total expense ratio of 0.67% and a majority allocation of solar energy holdings. Because this fund specializes in one form of alternative energy, it may not be as diversified as other funds that invest in various types of energy. At the time of this writing, TAN’s top three holdings include Enphase Energy, First Solar and NEXTracker.
» How are sustainable funds measured? Learn more about ESG investing
iShares Global Clean Energy ETF (ICLN)
With over $2 billion in assets, this ETF is the largest clean energy fund. ICLN has an expense ratio of 0.41%, and the fund earns a high “AA” MSCI ESG score, which measures the fund against environmental, social and corporate governance factors. Currently, ICLN’s top three holdings include First Solar, Enphase Energy and Iberdrola SA.
Invesco WilderHill Clean Energy ETF (PBW)
Invesco WilderHill Clean Energy ETF tracks the WilderHill Clean Energy Index and is made up of stocks involved in clean energy and conservation. PBW has an expense ratio of 0.66%. Currently, its top three holdings include EVgo, Rivian Automotive and QuantumScrape.
» View our list: The best EV stocks
Why invest in clean energy ETFs
With so many automakers committing to making electric vehicles, the long-awaited “green revolution” may have arrived.
Clean energy ETFs offer access to energy companies without having to pick and choose stocks yourself. If you want, you can find clean energy ETFs that specialize in solar or wind, or just opt to invest more broadly across the alternative energy industry.
And while many of these ETFs have five years' worth of data, renewable energy is still a relatively new field. Rather than purchasing single stocks in this field ETFs spread out your risk and help diversify your portfolio. That way, you're not relying on a single company.
» Want more options? Check out the top-rated ESG funds
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