Best Clean Energy Mutual Funds to Buy in 2026
Clean energy mutual funds are professionally managed funds that pool money from many investors to buy shares in companies focused on renewable energy, such as solar, wind, geothermal and energy storage. The best-known true mutual funds in this space in 2026 are the New Alternatives Fund (NALFX), the Guinness Atkinson Alternative Energy Fund (GAAEX), the Calvert Global Energy Solutions Fund (CGAEX) and the Fidelity Environment and Alternative Energy Fund (FSLEX). Unlike the popular clean energy ETFs (ICLN, TAN, QCLN, PBW), these are open-end mutual funds you buy at the end-of-day net asset value, usually with a minimum initial investment.
Affiliate disclosure: this article may contain affiliate links, and we may earn a commission at no extra cost to you. This is not financial advice. Fund expense ratios, minimums and returns change; verify current figures on each fund’s page before investing, and consider speaking with a licensed advisor. Figures are as of July 2026.
Best clean energy mutual funds in 2026 (compared)
The table below compares the leading clean energy and alternative energy mutual funds by expense ratio, minimum initial investment and approximate five-year annualized return. Returns fluctuate constantly, so treat the return column as a dated snapshot, not a promise.
| Fund (ticker) | Focus | Expense ratio | Min. investment | 5-yr avg return* |
|---|---|---|---|---|
| New Alternatives Fund (NALFX) | Renewable energy & environment (SRI) | ~1.08% | $2,500 | ~22.7% |
| Fidelity Environment & Alt. Energy (FSLEX) | Environmental & alternative energy | 0.69% | $0 | ~12% |
| Guinness Atkinson Alt. Energy (GAAEX) | Global alternative energy | ~1.10% | $5,000 | See prospectus |
| Calvert Global Energy Solutions (CGAEX) | Global sustainable energy | 1.24% | ~$1,000 | See prospectus |
What is a clean energy mutual fund?
A clean energy mutual fund is an open-end, usually actively managed fund that invests primarily in companies tied to renewable energy and the transition away from fossil fuels, including solar, wind, geothermal, hydro, energy storage, grid technology and energy efficiency. You buy and sell shares once per day at the fund’s net asset value, and most require a minimum initial investment. That structure is the key difference from an exchange-traded fund, which trades like a stock throughout the day.
Because the pool of pure-play clean energy mutual funds is small, many investors searching for one end up in clean energy ETFs instead. Both give you diversified exposure to the sector; the right choice comes down to how you like to trade, the fees you will pay and whether you want active management. We cover that trade-off below.
See Related: How to Invest in Renewable Energy
The best clean energy mutual funds
1. New Alternatives Fund (NALFX)
The New Alternatives Fund is one of the oldest socially responsible funds focused on renewable energy, launched in 1982. It invests in solar, wind, energy efficiency and clean-water companies and has been among the strongest performers in the category, with an approximate five-year annualized return near 22.7% as of mid-2026. Class A shares (NALFX) carry a roughly 1.08% expense ratio, a $2,500 minimum and a front-end sales load; a no-load investor share class (NAEFX) also exists. Its concentrated, actively managed approach means higher volatility than a broad index.
See Related: Best Fossil Fuel Free Funds
2. Fidelity Environment and Alternative Energy Fund (FSLEX)
The Fidelity Environment and Alternative Energy Fund is the low-cost, low-friction pick. It charges a 0.69% expense ratio with no minimum initial investment and no sales load, and it holds a mix of alternative-energy and environmental-services companies such as Tesla, Cummins and Linde. Its approximate five-year annualized return was near 12% as of mid-2026, trailing NALFX but with a broader, more diversified portfolio. For most beginners, the $0 minimum and low fee make it the easiest entry point.
See Related: Best Mutual Funds to Invest in Today
3. Guinness Atkinson Alternative Energy Fund (GAAEX)
The Guinness Atkinson Alternative Energy Fund is a global, no-load fund investing across solar, wind, hydro, geothermal and energy-efficiency companies worldwide. It carries an expense ratio around 1.10% and a $5,000 minimum initial investment. Its international tilt gives you exposure to clean energy leaders outside the United States, but that global small- and mid-cap focus also makes it one of the more volatile options on this list. Check the latest fact sheet for current performance before investing.
4. Calvert Global Energy Solutions Fund (CGAEX)
The Calvert Global Energy Solutions Fund invests at least 80% of assets in U.S. and non-U.S. companies whose main business is sustainable energy solutions, historically including holdings such as NextEra Energy and First Solar. Class A shares (CGAEX) carry a 1.24% expense ratio, the highest on this list, with a Calvert Class A minimum of about $1,000. Its appeal is Calvert’s long track record in responsible investing and a genuinely global sustainable-energy mandate.
See Related: Best Climate Change Mutual Funds
A handful of broader sustainable funds also carry meaningful clean energy exposure, including the Shelton Sustainable Equity Fund (NEXTX, formerly the Green Alpha Fund). Because their mandates are wider than pure clean energy, confirm the current holdings and objective in the prospectus before treating them as a dedicated clean energy play.
Clean energy mutual funds vs ETFs: what is the difference?
The difference is how the fund trades and how it is managed. A mutual fund is priced once per day at its net asset value, often actively managed, and typically requires a minimum investment. A clean energy ETF trades on an exchange like a stock all day, usually tracks an index, and can be bought for the price of a single share with no minimum. Most of the popular tickers people call clean energy funds, such as ICLN, TAN, QCLN, PBW and FAN, are actually ETFs, not mutual funds.
- Choose a mutual fund if you want professional active management, plan to invest a set amount regularly, and do not care about intraday trading.
- Choose an ETF if you want the lowest fees, no minimum, intraday liquidity and index-based diversification.
If ETFs fit you better, see our guides to solar energy ETFs and electric vehicle ETFs, or browse the broader clean energy funds landscape.
How to invest in clean energy mutual funds
You can buy most clean energy mutual funds directly from the fund company or through a brokerage account such as Fidelity, Schwab or Vanguard. Confirm the fund is available on your platform and check whether it carries a transaction fee or sales load, then make sure you meet the minimum initial investment. Because these funds are concentrated in one sector, most advisors suggest holding them as a small satellite position rather than a core holding.
See Related: A Beginner’s Guide to Sustainable Investing
Are clean energy mutual funds a good investment?
Clean energy mutual funds can be a good fit for investors who want long-term, values-aligned exposure to the energy transition and prefer professional management over picking stocks. The trade-offs are real: they charge higher fees than clean energy ETFs, they are concentrated in a single volatile sector, and clean energy has gone through sharp drawdowns since its 2021 peak. Size the position to your risk tolerance, expect volatility, and diversify beyond a single theme. This is not financial advice.
How we chose these funds
We screened open-end mutual funds (not ETFs) whose primary mandate is renewable, alternative or sustainable energy and that are accessible to U.S. retail investors, then compared them on expense ratio, minimum investment and available long-term performance. Expense ratios, minimums and returns come from the fund providers, Morningstar and Zacks as of July 2026 and are shown for Class A or investor shares where applicable. Inclusion is not a recommendation to buy.
FAQs
What is the best clean energy mutual fund?
There is no single best clean energy mutual fund, and this is not financial advice. As of 2026, the New Alternatives Fund (NALFX) has posted the strongest long-term returns in the category, while the Fidelity Environment and Alternative Energy Fund (FSLEX) is the most accessible thanks to its 0.69% expense ratio, no sales load and no minimum investment. The right choice depends on your fees, minimum and time horizon.
What is the difference between a clean energy mutual fund and an ETF?
A clean energy mutual fund is priced once per day at net asset value, is often actively managed and usually requires a minimum investment. A clean energy ETF trades on an exchange like a stock throughout the day, typically tracks an index and has no minimum beyond one share. Popular tickers such as ICLN, TAN, QCLN and PBW are ETFs, not mutual funds.
Does Fidelity have a clean energy mutual fund?
Yes. The Fidelity Environment and Alternative Energy Fund (FSLEX) is an actively managed mutual fund investing in alternative energy and environmental-services companies. As of July 2026 it charges a 0.69% expense ratio with no minimum initial investment and no sales load.
Does Vanguard have a clean energy mutual fund?
Vanguard does not offer a dedicated clean energy mutual fund. Investors using Vanguard typically access the sector through third-party funds such as GAAEX or through clean energy ETFs, or through Vanguard’s broader ESG index products, which are diversified rather than energy-specific.
Are clean energy mutual funds a good investment in 2026?
Clean energy mutual funds offer long-term exposure to the energy transition with professional management, but they carry higher fees than ETFs and are concentrated in a single volatile sector that has seen large drawdowns since 2021. They can suit a small satellite position for a long-term, risk-tolerant investor. This is not financial advice.
Last updated July 17, 2026: corrected the list to feature actual clean energy mutual funds (previously mixed with ETFs), added a comparison table of expense ratios, minimums and returns, added a mutual-funds-vs-ETFs explainer, refreshed all figures, and added an affiliate disclosure and methodology.
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