Top Clean Energy ETFs Surging to 2025 Highs: Prices & Insights

California Accelerates Renewable Energy Goals, Targeting 50% Clean Electricity by 2030

At the recent United Nations Climate Action Summit in New York, global leaders made ambitious commitments to reduce carbon emissions, fueling optimism in the clean energy market. With 66 countries pledging enhanced climate targets and 30 aiming for carbon neutrality by 2050, the renewable energy sector is positioned for robust expansion. Chilean President Sebastian Piñera Echeñique, hosting an upcoming climate forum, emphasized this momentum, as reported by MarketWatch.

States like California are championing solar power adoption, mandating solar installations on all new homes built from 2020 onward. This initiative supports California's bold goal to generate half of its electricity from renewable sources by 2030, underscoring a promising outlook for clean energy investments.

For investors seeking cost-efficient and diversified exposure to this thriving sector, these three clean energy ETFs stand out. Below is a comprehensive overview of each fund, followed by technical chart insights to highlight potential trading opportunities.

Invesco WilderHill Clean Energy ETF (PBW) – 2024 Price & Performance

Established in 2005, PBW tracks the WilderHill Clean Energy Index, focusing on U.S. companies advancing clean energy and conservation technologies. The ETF’s 38 holdings include leaders like Enphase Energy (ENPH) at 3.96%, SolarEdge Technologies (SEDG) at 3.72%, and Ballard Power Systems (BLDP) at 3.65%. With daily dollar volumes often exceeding $800,000 and a tight 0.18% average spread, PBW offers strong liquidity. Managing $177.87 million in assets, it charges a competitive 0.70% fee and delivers a 1.28% dividend yield. Year-to-date (YTD) returns stand at an impressive 47.87% as of June 2024.

Technically, PBW’s 50-day simple moving average (SMA) crossed above its 200-day SMA in early March, signaling sustained upward momentum. Recently, the ETF broke above an ascending triangle pattern, a bullish continuation signal. The previous resistance near $30.50 now acts as support, presenting an attractive entry point for momentum-focused traders. Profit targets near the January 2014 swing high around $35 are recommended, with stop-loss orders placed below the 50-day SMA to manage downside risk.

First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) – 2024 Update

QCLN, managing $111.37 million, mirrors the NASDAQ Clean Edge Green Energy Index, investing in companies advancing solar photovoltaics, biofuels, and advanced batteries. Top holdings include Tesla (TSLA), Universal Display Corporation (OLED), and ON Semiconductor (ON), collectively accounting for about 20% of the fund. The ETF maintains daily trading volumes near $400,000 and boasts a narrow 0.13% average spread. It offers a 0.87% dividend yield, charges a 0.60% management fee, and has achieved a 27.78% YTD gain as of June 2024.

QCLN has formed a broad ascending triangle over the past five months, with the latest close just under 1% from its 52-week high. Breakout traders should consider entering on a volume-backed move above $22.50. Employing trailing stops—such as placing stops below recent swing lows or exiting on a close below the 10-day SMA—can help lock in profits while managing risk.

iShares Global Clean Energy ETF (ICLN) – Current Price & Outlook for 2024

ICLN tracks the S&P Global Clean Energy Index and holds $331.52 million in assets. Its diversified portfolio spans biofuels, ethanol, geothermal, hydroelectric, solar, and wind sectors, including companies from the U.S., Hong Kong, New Zealand, and Brazil. SolarEdge Technologies leads with an 8% allocation. The ETF features a low expense ratio of 0.46% and has surged 38.94% YTD as of June 2024.

ICLN’s price has climbed steadily with minor pullbacks to the 50-day SMA. A recent breakout from a tight ascending triangle pushed the ETF to a new 52-week high at $11.40, signaling potential for further gains. Traders entering now should consider taking profits near $15, a key resistance level dating back to 2008. Stop-loss orders below the recent low of $10.81 are advisable to protect against downside risk and preserve momentum trade integrity.

For investors and traders aiming to capitalize on the accelerating clean energy transition, these ETFs offer diversified, liquid, and growth-oriented options aligned with global sustainability trends.

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