If you want the broader ETF framework before adding a clean-energy tilt, start with our ETFs and index funds hub.
Best Clean Energy ETFs Listed on the TSX
| ETF | Ticker | MER | Yield | Holdings | Distribution | Strategy |
|---|
| Harvest Clean Energy | HCLN | 0.40% | ~5.0% | 30+ | Monthly | Global clean energy + covered calls |
| BMO Clean Energy | ZCLN | 0.40% | ~0.5% | 60+ | Annual | S&P Global Clean Energy Index |
| Evolve Clean Energy | CLNX | 0.45% | ~4.5% | 30+ | Monthly | Clean energy leaders + covered calls |
Best US-Listed Clean Energy ETFs (Accessible from Canada)
| ETF | Ticker | MER | Yield | Holdings | AUM | Focus |
|---|
| iShares Global Clean Energy | ICLN | 0.40% | ~1.5% | 100+ | $4B+ | Solar, wind, hydro globally |
| Invesco Solar | TAN | 0.67% | ~0.5% | 40+ | $2B+ | Pure solar energy |
| First Trust Global Wind Energy | FAN | 0.60% | ~2.0% | 50+ | $500M+ | Wind energy producers |
| Global X Hydrogen | HYDR | 0.50% | 0% | 25+ | $100M+ | Hydrogen economy |
| ALPS Clean Energy | ACES | 0.55% | ~1.0% | 40+ | $500M+ | US-focused clean energy |
| First Trust NASDAQ Clean Edge Green Energy | QCLN | 0.58% | ~0.5% | 60+ | $1B+ | Clean energy tech (includes Tesla) |
| Invesco WilderHill Clean Energy | PBW | 0.62% | ~0.5% | 60+ | $300M+ | US clean energy innovation |
Clean Energy Sub-Sectors
| Sub-Sector | % of Clean Energy ETFs | Key Companies | Growth Driver |
|---|
| Solar | 25–35% | First Solar, Enphase, SolarEdge | Declining costs, rooftop adoption |
| Wind | 20–30% | Vestas, Ørsted, Siemens Gamesa | Offshore wind expansion |
| Utilities (renewable) | 15–25% | NextEra, Brookfield Renewable | Utility-scale clean generation |
| Hydrogen | 5–10% | Plug Power, Ballard Power, Bloom | Green hydrogen for heavy industry |
| Energy storage | 5–10% | Tesla, Fluence Energy | Battery storage for grid stability |
| EV/charging | 5–10% | ChargePoint, Rivian (in some ETFs) | Transportation electrification |
Top Holdings in Global Clean Energy ETFs
ICLN (iShares Global Clean Energy)
| Company | Ticker | Country | Sub-Sector | Weight |
|---|
| First Solar | FSLR | US | Solar panels | ~8% |
| Enphase Energy | ENPH | US | Solar microinverters | ~6% |
| Vestas Wind Systems | VWS | Denmark | Wind turbines | ~5% |
| Iberdrola | IBE | Spain | Renewable utility | ~5% |
| NextEra Energy | NEE | US | Largest renewable utility globally | ~4% |
| SolarEdge Technologies | SEDG | Israel | Solar inverters | ~3% |
| Ørsted | ORSTED | Denmark | Offshore wind | ~3% |
| Plug Power | PLUG | US | Hydrogen fuel cells | ~2% |
| Brookfield Renewable | BEP | Canada | Hydro, wind, solar | ~3% |
| Northland Power | NPI | Canada | Wind, solar, offshore wind | ~2% |
Canadian Clean Energy Stocks
| Company | Ticker | Market Cap | Focus | Yield |
|---|
| Brookfield Renewable Partners | BEP.UN | $20B+ | Hydro, wind, solar, storage (global) | ~5.0% |
| Northland Power | NPI | $6B+ | Offshore wind, solar | ~5.0% |
| TransAlta Renewables | RNW | $4B+ | Wind, solar, hydro, gas | ~6.0% |
| Boralex | BLX | $3B+ | Wind, solar (Canada, France, US) | ~2.0% |
| Innergex Renewable Energy | INE | $3B+ | Hydro, wind, solar | ~4.5% |
| Algonquin Power | AQN | $5B+ | Regulated utilities + renewables | ~5.5% |
| Ballard Power Systems | BLDP | $1B+ | Hydrogen fuel cells | 0% |
| Maxeon Solar Technologies | MAXN | <$500M | Solar panel manufacturing | 0% |
| ETF | 1-Year | 3-Year (Annualized) | 5-Year (Annualized) | MER |
|---|
| ICLN | ~5% | -8% | -2% | 0.40% |
| TAN | ~0% | -15% | -5% | 0.67% |
| HCLN | ~8% | -5% | N/A | 0.40% |
| QCLN | ~10% | -5% | +5% | 0.58% |
Past performance does not guarantee future results. Clean energy has been volatile.
Clean Energy vs Traditional Energy
For the non-renewable side of that tradeoff, see best energy ETFs in Canada.
| Factor | Clean Energy ETFs | Traditional Energy ETFs (XEG) |
|---|
| Recent performance | Poor (2022–2024), recovering | Strong (2021–2024) |
| Dividend yield | 0–2% (growth stocks) | 3–5% (mature producers) |
| Government support | Subsidies, tax credits, mandates | Carbon taxes, ESG pressure |
| Profitability | Many companies still unprofitable | Generally profitable |
| Interest rate sensitivity | Very high (capital-intensive) | Moderate |
| Long-term demand outlook | Structural growth | Uncertain (peak oil debate) |
| Volatility | Very high | High |
| ESG alignment | ✅ Full | ❌ Excluded by many ESG screens |
Clean Energy vs ESG ETFs
| Feature | Clean Energy ETF (ICLN, HCLN) | ESG ETF (XESG, ESGA) |
|---|
| Focus | Renewable energy companies only | All sectors, ESG-screened |
| Holds oil companies? | No | Sometimes (if governance scores are high) |
| Holds banks? | No | Yes (if ESG-compliant) |
| Diversification | Low (one sector) | High (all sectors) |
| Risk | Sector concentration | Similar to broad market |
| Best for | Sector conviction | Values-aligned broad investing |
If you want a values-based whole-portfolio approach instead of a renewables sector bet, compare best ESG ETFs in Canada.
Risks
| Risk | Detail |
|---|
| Interest rate sensitivity | Clean energy companies need heavy borrowing — rates crush valuations |
| Policy dependence | Relies on government subsidies and mandates |
| Technology risk | Rapid innovation can make current tech obsolete |
| Profitability challenges | Many pure-play clean energy companies aren’t profitable yet |
| Volatility | Sector fell 40–60% from 2021 peaks |
| Concentration | Heavy weighting in solar and wind — limited diversification |
| Competition | Chinese solar panel manufacturing dominates, compressing margins |
| Greenwashing risk | Some ETFs include companies with questionable green credentials |
Portfolio Allocation
| Approach | Clean Energy Weight | Implementation |
|---|
| Small satellite | 3–5% | ICLN or HCLN alongside core portfolio |
| ESG tilt | 5–10% | Clean energy + ESG-screened core |
| Green conviction | 10–15% max | Multiple clean energy plays + Canadian renewables |
| Via utility ETFs | Indirect | Utility ETFs (ZUT) include some renewable utilities |
| Via broad market | Indirect | XEQT already holds NextEra, Vestas, etc. |
That higher-level sizing decision should come after you set your core allocation with asset allocation by age.