Amid a global renewable energy revolution that has seen solar and wind overtake coal as the world’s top electricity source, clean energy ETFs are struggling to attract assets despite posting double-digit gains this year.
The ALPS Clean Energy ETF (ACES ) has returned 31.9% year-to-date, according to ETF Database.
The outflows come as renewables overtook coal as the biggest source of global electricity for the first time in the first half of 2025, according to CNN. Global renewable power capacity will likely double over the next five years, increasing by 4,600 gigawatts.
ACES is well-positioned to capture the performance of North American clean energy stocks. The fund tracks U.S. and Canada-listed companies in the clean energy industry and charges a 0.55% expense ratio, according to ETF Database. ACES holds 48 companies spanning solar, wind, electric vehicles, battery storage, biofuels, hydrogen, and geothermal energy.
The fund has delivered a 25.2% return over the past year, according to ETF Database. Its three-year annualized return shows a loss of 13.2%. In recent years, public support for clean energy has taken some hits, weighing on the stocks, but the space has been on an upward trend in 2025.
Clean Energy ETF Spans Multiple Renewable Sectors
The fund’s top holding is Nextracker Inc. (NXT) at 6.5% of assets, according to ETF Database. The solar tracking technology company is followed by battery storage firm Eos Energy Enterprises, Inc. (EOSE) at 5.7% and solar panel maker First Solar, Inc. (FSLR) at 5.6%.
Electric vehicle makers represent a major portion of the fund’s holdings, with Tesla, Inc. (TSLA) at 5.4%, Rivian Automotive, Inc. (RIVN) at 4.6%, and Lucid Group, Inc. (LCID) at 3.1%, according to ETF Database. Solar companies also feature prominently, with residential installer Sunrun Inc. (RUN) accounting for 4.8% of assets.
The U.S. ranks second globally in new solar growth after China. Wind and solar installations account for the majority of new power coming online, according to CNN. The U.S. generated 190 terawatt hours of solar in the first half of 2025.
The current clean energy boom in the U.S. is driven in part by businesses rushing to take advantage of Biden-era clean energy tax credits before they expire, according to CNN. Solar, batteries, and onshore wind are among the cheapest and fastest forms of energy to install even without federal tax credits.
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