HomeInvestingTop 5 Unmissable Clean Energy ETFs of 2024

Top 5 Unmissable Clean Energy ETFs of 2024

1. Invesco Solar ETF (TAN)

Invesco Solar ETF (TAN) is one of the largest clean energy ETFs in 2024 in terms of assets under management (AUM). The ETF aims to track the MAC Global Solar Energy Index, offering investors exposure to a diversified portfolio of companies involved in the solar energy industry. This includes photovoltaic cell manufacturers, suppliers to the solar power sector, companies that install solar power systems, and firms that specialize in electricity generation from solar energy. Despite market volatility, TAN has shown a strong performance trend in the past years, reflecting the growing demand for solar power and its increasing role within the global energy mix.

2. iShares Global Clean Energy ETF (ICLN)

The iShares Global Clean Energy ETF (ICLN) is a well-known international clean energy ETF in 2024 that is composed of 30 different companies globally involved in renewable energy. It tracks the S&P Global Clean Energy Index. ICLN includes stocks of companies that produce energy from solar, wind, and other renewable sources. Firms involved in clean energy technologies such as electric cars and energy-efficient solutions are also part of the ICLN portfolio. ICLN’s extensive geographic and sectoral diversification gives it an edge over other ETFs, thus making it a popular choice for investors.

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

The First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) is among the largest clean energy ETFs in 2024 and it tracks the NASDAQ Clean Edge Green Energy Index. The ETF contains firms which are manufacturers, developers, distributors, or installers of green-energy and conservation technologies. Part of the QCLN portfolio includes companies operating in advanced materials, biofuels, electric vehicles, energy management, and solar power. The ETF’s approach makes it even more appealing to investors who want to have a broader perspective on clean energy.

4. VanEck Vectors Low Carbon Energy ETF (SMOG)

The VanEck Vectors Low Carbon Energy ETF (SMOG) is a premier ETF focused on the transitioning energy sector. It tracks the Ardour Global Index, targeting companies worldwide that are primarily engaged in the business of alternative energy. The fund includes renewable energy companies (like wind, solar, biofuel, and hydroelectric), businesses associated with ethanol, biodiesel, lithium batteries, and fuel cells. SMOG’s portfolio is slightly tilted toward technology firms, providing additional sector diversification compared to ETFs focused solely on utilities.

5. ALPS Clean Energy ETF (ACES)

The ALPS Clean Energy ETF (ACES) is diversified across several sub-sectors of the renewable energy space, making it one of the top clean energy ETFs of 2024. ACES tracks the CIBC Atlas Clean Energy Index. It offers exposure to companies in the clean energy sector, such as those involved in renewables, clean technology, and efficiency. ACES is an excellent choice for investors who want to invest in the broader clean energy sector, which includes wind, solar, smart grid, and energy storage companies.

The clean energy ETFs mentioned above represent the leading edge of energy investment portfolios in 2024. Their focus ranges from solar and wind power companies to alternative energy and low-carbon investment opportunities. Investing in these ETFs not only provides financial returns but also helps in contributing to the global shift towards a more sustainable future.

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