economy, with renewable sources becoming a larger portion of its overall energy production. Over the past decades, clean energy has become a more important part of the U.S. Limited investment options means that investors may struggle to find an ETF that fits their needs.

Limited investment options: Clean energy is a niche category in the energy industry, so there are fewer ETFs that focus on clean energy in particular as compared to energy as a whole.

energy companies will want to include some fossil fuel businesses in their portfolios. People looking for broader exposure to U.S.

Miss out on fossil fuels: Fossil fuels, such as crude oil, still provide the majority of energy used in the United States, and these clean energy ETFs don’t hold any fossil fuel investments.

If you want to help fight against climate change, investing in companies dedicated to clean energy can make you feel good.

Feel good about your investment choices: Some investors like to put their money in investments that they feel support their personal beliefs and goals.

This gives investors an opportunity for significant gains as clean energy increases its market share. Their output doubled between 20 and is poised to continue growing.

Invest in a growing sector: Renewable energy and other clean energy technologies are the fastest-growing energy sources in the U.S.

Miss out on investing gains from fossil fuels.

This also exposes the fund to businesses that are poised to grow as sustainable living becomes more popular. Its diversification into other businesses that promote sustainability gives the fund some valuable diversification. This fund gives investors who want exposure to clean energy a way to invest without putting all of their money in one industry. The fund has $470.8 million under its management and an expense ratio of 0.58%, equivalent to $5.80 for every $1,000 invested. The fund’s six themes are: alternative energy, energy efficiency, green building, sustainable water, pollution prevention and control, and sustainable agriculture Instead, it includes companies that contribute to environmental sustainability in general. The Invesco MSCI Sustainable Future ETF focuses on more than just clean energy, though clean energy companies play a major role in the fund’s portfolio.

Assets under management (AUM): $470.8 million as of May 26, 2021.

Invesco MSCI Sustainable Future ETF (ERTH) This gives investors some more diversification than they would receive through funds that focus solely on energy production. The fund also invests in the manufacturing of solar panels and other necessities for clean energy production. While the iShares ETF primarily invests in utilities, it also invests in industrial and technology companies responsible for the development of clean energy technology. It’s performed well, gaining 38.67% over the past three years-trailing its benchmark, the S&P Global Clean Energy Index, by 0.2%.

The fund also has the lowest expense ratio of any fund on this list, with its net expense ratio coming to 0.46%, equivalent to $4.60 per $1,000 invested. It gives investors exposure to clean energy companies around the world, holding 112 different stocks in its portfolio.

The iShares Global Clean Energy ETF is one of the largest clean energy ETFs on the market by assets. Assets under management (AUM): $5.86 billion as of May 26, 2021.Our partners cannot pay us to guarantee favorable reviews of their products or services. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.

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