iShares, First Trust, and Invesco: Which Clean Energy ETF Fits Your 2026 Portfolio

iShares Global Clean Energy ETF (ICLN) has $2.2B in assets with the lowest expense ratio at 0.39%, gaining 76% over the past year through exposure across 20+ countries including Spain, Denmark, China, and India. First Trust Nasdaq Clean Edge Green Energy (QCLN) returned 94% over the past year by spanning the full clean tech value chain including EVs, batteries, and semiconductors with Tesla at 7.7% and ON Semiconductor at 8%. ALPS Clean Energy (ACES) gained 58% over the past year with North American exposure only, holding 39 positions across utilities, industrials, and technology with a more balanced top-five concentration than its peers.

Crude oil volatility above $50 over 12 months has sharpened investor interest in clean energy as a structural hedge, with the three funds targeting different parts of the green transition ranging from global renewable equipment manufacturing to the full U.S. clean technology value chain to domestic-only North American operators.

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WTI crude oil hit $114.58 a barrel in early April, its highest level in a year, before settling back toward $100. That kind of volatility, a swing of more than $50 over 12 months, tends to sharpen investor interest in clean energy as a structural alternative. All three ETFs covered here have posted solid gains over the past year, but they target different parts of the green transition and carry meaningfully different risk profiles.

The Global Benchmark: iShares Global Clean Energy ETF

iShares Global Clean Energy ETF (NASDAQ:ICLN) is the largest of the three funds, with approximately $2.2 billion in assets. It tracks the S&P Global Clean Energy Transition Index, which is designed to capture clean energy companies across both developed and emerging markets. The fund has been around since June 2008, giving it the longest track record of the three.

The geographic breadth is the defining feature here, as ICLN holds companies from more than 20 countries, including the United States, Spain, Denmark, China, India, Brazil, South Korea, Japan, and Portugal. That means a single position in ICLN captures Iberdrola's Spanish utility operations, Vestas's Danish wind turbine manufacturing, China Yangtze Power's hydroelectric output, and Suzlon's Indian wind energy business, alongside U.S.-listed names like First Solar and Enphase Energy. No other fund on this list comes close to that geographic spread.

The sector mix skews toward industrials and technology rather than traditional utilities. Industrials represent 34% of the portfolio, information technology 12%, while utilities are at 43%, reflecting the fund's tilt toward clean energy equipment manufacturers and infrastructure builders rather than regulated power companies. The top holding, Next Power, accounts for 10.2% of the fund, a meaningful concentration for a fund with global ambitions.

The expense ratio is 0.39%, the lowest of the three funds, which matters over long holding periods. ICLN has gained about 76% over the past year and is up roughly 20% year to date in 2026. The primary tradeoff is currency and geopolitical exposure. Holding companies across 20-plus countries introduces foreign-exchange risk and sensitivity to policy shifts in markets such as China and Europe, which a domestic-only fund avoids.

The U.S. Clean Tech Value Chain: First Trust Nasdaq Clean Edge Green Energy Index Fund

First Trust Nasdaq Clean Edge Green Energy Index Fund (NASDAQ:QCLN) is the oldest fund on this list, launched in February 2007, and it takes the most expansive view of what "clean energy" means. Where ICLN focuses on energy generation and equipment, QCLN encompasses the full clean technology value chain: power semiconductors, EV manufacturers, battery materials, hydrogen fuel cells, grid modernization, and EV charging infrastructure. The result is a portfolio that reads more like a broad clean technology fund than a narrowly defined renewables play.

The sector allocation makes this clear. Industrials represent 30% of QCLN, while information technology is the giant at 38%, and consumer discretionary holdings at 11%, with that last bucket driven largely by Tesla and Rivian. Tesla carries a 7.7% weight, and Rivian 6.9%, making QCLN the only fund on this list with meaningful exposure to EV manufacturers embedded in its core holdings. ON Semiconductor, at 8%, adds power-electronics exposure, which is essential infrastructure for both EVs and renewable energy systems.

QCLN holds 53 positions and spans solar, wind, batteries, lithium, hydrogen, and grid technology. That breadth means the fund participates across multiple green transition sub-themes simultaneously, rather than concentrating returns in any single technology. The portfolio turnover rate of 23% is low, suggesting the index methodology favors stability over frequent rebalancing.

Performance has been strong: QCLN is up roughly 94% over the past year, the best one-year return of the three funds, and up about 17% year to date. The expense ratio is 0.56%. The main caveat is concentration at the top: Bloom Energy alone accounts for roughly 7% of the portfolio, meaning a single stock's performance can meaningfully move the fund. Investors also take on EV industry risk through their positions in Tesla and Rivian, which add a layer of exposure unrelated to renewable energy generation.

The North American Pure-Play: ALPS Clean Energy ETF

ALPS Clean Energy ETF (NYSEARCA:ACES) is the most geographically focused of the three. It tracks the CIBC Atlas Clean Energy Index, which is designed to hold only U.S. and Canadian clean energy companies. That North American scope is a deliberate construction choice that eliminates the currency risk and emerging-market exposure associated with ICLN's global mandate.

The fund launched in June 2018 and holds approximately $112 million in assets, making it the smallest and least liquid of the three. The portfolio is spread across roughly 39 positions and includes a broader sector mix than either ICLN or QCLN: industrials at 30%, utilities at 25%, information technology at 14%, and consumer discretionary at 9%. That utilities allocation is notably higher than in the other two funds, giving ACES more exposure to regulated clean power operators like Clearway Energy and Brookfield Renewable Partners.

The top holdings are more evenly distributed than in ICLN or QCLN. The largest position, NextPower, carries a 5.7% weight, and the top five holdings (NextPower, Albemarle, Brookfield Renewable, Northland Power, and Ormat Technologies) each have a weight of 5% to 5.7%. That flatter concentration profile means no single company dominates returns the way names like Bloom Energy do in ICLN and QCLN.

ACES gained roughly 58% over the past year, the lowest one-year return of the three funds, and is up about 7% year to date. The expense ratio is 0.55%. The smaller asset base is the most practical concern: trading spreads on ACES can be wider than on ICLN or QCLN, which matters for investors transacting in larger sizes or trading frequently.

How the Three Funds Differ in Scope, Concentration, and Geography

ICLN offers the broadest geographic reach and the lowest expense ratio of the three, with $2.2 billion in assets and exposure across more than 20 countries. QCLN covers the full U.S.-listed clean technology value chain, including EVs and power semiconductors, with Bloom Energy as its largest position. ACES limits its holdings to North American companies, carries a flatter concentration profile and a higher allocation to utilities, and has the smallest asset base of the three at roughly $112 million.

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