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Best Clean Energy ETFs in Canada (2026)

Updated

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%

Clean Energy ETF Performance

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.