Solar power is on a global uptrend and will grow more extensively in the coming decades. As the technology for solar power refines and becomes easily accessible, solar energy will grow in reach and influence worldwide.
So companies that focus on manufacturing and producing solar power will also grow. This goes for all the companies that create solar energy, from gathering the raw materials to solar farming and the production of solar power.
So if you want in on the upswing of solar, an excellent way to cover your bases is with an ETF.
ETFs target several industries and companies within a specific category, and here are the best solar ETFs to invest in today.
These are some of the top solar energy ETFs to invest in today, from solar energy index funds to renewable energy ETFs.
Table of Contents
- 10 Best Solar Energy ETFs to Invest in Today
- 1. Solar Energy UCITS – Best Solar ETF for Solar Enthusiasts
- 2. Invesco WilderHill Clean Energy – Best Solar ETF for Investors
- 3. RAYS Solar – Best Solar ETF for Growth
- 4. CTEX S&P Kensho CleanTech – Best Solar ETF for Variety
- 5. iShares Global Clean Energy – Best Solar ETF for Clean Energy
- 6. ALPS Clean Energy – Best Solar ETF for Performance
- 7. SmartETFs Sustainable Energy – Best Solar ETF for Global Change
- 8. VanEck Low Carbon Energy – Best Solar ETF for Stability
- 9. First Trust NASDAQ Clean Edge Green Energy Index – Best Solar ETF for NASDAQ
- 10. Invesco Solar – Best Solar ETF Overall
- About Solar ETFs in General
- Solar ETFs Are Volatile
- Solar ETF’s Focus On Manufacturing
- Solar ETFs are Not Always About Performance
- How to Buy Solar Energy ETFs
10 Best Solar Energy ETFs to Invest in Today
1. Solar Energy UCITS – Best Solar ETF for Solar Enthusiasts
This ETF is for those excited about the future of solar power. Solar Energy UCITS is a European ETF solely focused on solar energy, focusing on companies and manufacturers who operate in the solar industry.
This pure-play ETF is attractive for those who want to solely invest in solar energy and not other kinds of clean energy. Their niche attracts investors far and wide for their returns and exposure to the solar energy field.
Solar power is one of the most rapidly growing industries globally, and Solar Energy UCITS takes full advantage of the megatrend in solar power to bring great return investments.
With over 6 million dollars in current assets, Solar Energy UCITS is positioned for future growth.
While this ETF has only been around since 2021, its future looks bright for those who believe in solar energy and its future.
While it can be risky to trust a newer ETF, Solar Energy UCITS seems worth the risk as the strategy and management of this fund seems sound from the returns it received last year.
If you’re ecstatic about the future of solar power and generation, this is the ETF for you.
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2. Invesco WilderHill Clean Energy – Best Solar ETF for Investors
If you’re looking to grow your holdings with a solid ETF, Invesco WilderHill Clean Energy is a great place to start. With a portfolio heavy in solar stocks, this ETF is excellent for those looking to invest in solar and other clean energy types.
Invesco is a solid investment, and this ETF is no different. You’ll be able to grow your holding with great dividends and substantial growth while conscientiously investing.
This ETF has also been around for decades and has a proven track record of growth for investors to enjoy. If you’re looking to expand your holdings, this is the best choice for you.
Invesco is an excellent resource for investors of all stripes and offers many different kinds of exchange-traded funds, in addition to the WilderHill Clean Energy.
Their solid investment strategies have helped investors for decades, and you won’t be disappointed with their management of your funds.
The portfolio on this ETF is heavy on solar power, making it an excellent option for solar enthusiasts.
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3. RAYS Solar – Best Solar ETF for Growth
RAYS Solar is an ETF positioned for explosive growth with the solar industry.
They invest in all aspects of solar power and are ready to take advantage of the global trend towards solar energy in the coming decades. At the same time, this is a smaller fund for now if you’re interested in solar stocks and holding.
Amongst all the other ETF options for solar power, RAYS is the one best positioned for growth, both from its holdings and strategy. It should be on your list of solar energy ETFs to buy.
Their portfolio is primarily focused on emerging markets for solar power, such as the Chinese and Japanese markets. As renewable energy catches on, the needs shall only grow, promising great returns for investors.
This is one of the best solar ETFs to invest in today. However, it does come with some risks.
RAYS is one of the newer ETFs, and there is always an inherent amount of risk in any ETF. While this ETF has potential for explosive returns, don’t put in more money than you feel you should risk.
Overall, this ETF is excellent if you’re looking for a solar power ETF for growth. Its positioning, strategy, and holdings are great for development, but that growth comes with risk. Don’t invest too much until you’re sure of the ETF’s performance and leadership.
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4. CTEX S&P Kensho CleanTech – Best Solar ETF for Variety
CTEX isn’t a solar ETF. It’s an industrial ETF specializing in clean technology, such as the products that go into making solar panels. However, while it doesn’t directly connect to solar per se, its close ties to solar industrialization are enough to remedy this.
Solar is more than just the direct utilization of solar power. It’s all of the industries that make the product to produce that solar power, although the industries that specialize in acquiring these materials are a part of this supply chain.
As solar power becomes a more significant industry, the companies that produce these vital components will also grow, the basis for CTEX’s strategy.
They’re one of the few ETFs with this philosophy, making them one of the most unique renewable ETFs on the market.
CTEX S&P Kensho CleanTech hasn’t seen the most outstanding returns since its inception in 2021; however, the market hasn’t been the kindest to electronics in the past couple of years.
They’ll likely start trending upwards when the supply chain issues for electronics are addressed.
That said, while they have great potential and are low right now because of the market, it’s still a risk, especially for a new ETF that hasn’t been doing well.
But if they can get past the current market hurdles they are positioned to take advantage of the coming clean energy boom.
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If you’re passionate about the stocks to invest in, this is the best ETF for you. Amongst its portfolio is a variety of solar stocks and other types of clean energy, all selected for growth and green investment.
The iShares Global Clean Energy ETF displays stats for its performance and energy characteristics, such as the amount of carbon their stocks put into the atmosphere and its compliance with the Paris accords, and even other statistics such as the business involvement in thermal coal power and nuclear arms.
This is the ultimate ETF for the conscientious objector. It supports clean energy, maintains a positive effect on the environment, and even stays out of controversial businesses such as weapons and coal.
That said, this isn’t the ETF for growth and returns.
While their overall market value can increase or decrease depending on the market and the industries it supports are growing sectors, this ETF is for showing you care about the stocks you invest in, not for growth.
It’s been in business for a while, and it has shown decent returns over the years, but that’s more likely because of the growth of renewable energy than the strategy and leadership. This ETF outright states it’s for conscientious investors, not really for market growth.
Of course, that doesn’t mean This ETF will waste your money. It still gives decent returns and quality dividends; remember, that’s not what you’re buying this stock for.
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6. ALPS Clean Energy – Best Solar ETF for Performance
It can be hard to find an ETF that delivers both conscientious investing and good market returns in the market on the downswing.
But ALPS has risen to the test in these trying times, showing great returns while remaining one of the best renewable energy ETFs on the market.
ALPS has delivered great dividends and returns since its inception in 2018, and while it remains on the newer side of ETFs, its stellar track record and its continuous growth in today’s market make it one of the best ETFs you can invest in for performance.
Their diverse holding includes some of the biggest names in renewable power, such as Brookfield Renewable and First Solar. Given their stock in some of the fastest-growing clean power companies, their store will likely only increase in price in the coming years.
ALPS’s solar holding makes up roughly twenty-five percent of their total portfolio, making them an excellent ETF for those looking toward the future of solar.
The rest of their portfolio is wind and other types of renewable power, including electric vehicles.
ALPS’s diverse portfolio and excellent market performance make it a superb ETF for those looking to make a good investment while conscientiously investing. It’s one of the best solar energy ETFs performance.
7. SmartETFs Sustainable Energy – Best Solar ETF for Global Change
The trend towards solar power is indicative of a more significant global shift towards renewable energy and away from fossil fuels. It’s the reason so many of these funds are newer and tend to focus on renewable energy as a whole rather than solely solar power.
Companies fueling this global shift in power require investments from ETFs like SOLR SmartETFs Sustainable Energy ETF.
They believe in funding the companies that fuel, benefit, and grow from this change, resulting in a tidy sum for their investors.
Their holdings are mainly based in the US and China, with good footholds in Europe and Canada, some of the biggest renewable energy markets poised for growth. Moreover, they’ve been doing well in performance sectors since SOLR’s creation, making them great for performance as well.
While no one can doubt their commitment to clean energy, it’s unfortunate that they don’t have many purely solar holdings.
Their portfolio does have companies that produce solar power, but overall this ETF falls behind in their solar stocks compared to the rest of the ETFs on this list.
This can be a dealbreaker if you are mainly looking for ETFs with large solar stocks and a portfolio primarily consisting of solar power.
However, the other types of renewable energy SOLR invest in help it cover this weakness, along with their driven commitment to clean energy and make the world a greener place.
SOLR is an excellent option if you’re looking for a good green ETF to invest in.
This ETF is focused on bringing clean energy to the world as a whole. Its diverse holdings and good track record make it reliable, but more importantly, it helps change the world by funding the companies who produce this change.
8. VanEck Low Carbon Energy – Best Solar ETF for Stability
All solar and renewable resource ETFs are typically volatile. It’s part of the pros and cons of investing in solar energy ETFs.
They’re riskier than other ETFs focused on more traditional power modes because fossil fuels and coal are already well-established. Meanwhile, renewable energy sources, such as solar, are still trying to find a good foothold in today’s power market.
So if you are looking for stability in renewable energy in these trying times, the VanEck Low Carbon Energy ETF is likely your best bet. Unfortunately, they have some carbon and low solar holding, so you have to sacrifice your ideals for solar energy and renewable power if you want stability.
This fund is also known as SMOG, and they focus on creating and maintaining a low carbon environment in their portfolio based on pure-play statistics. It can be easy to get turned off from this fund, especially considering they’re still pretty volatile compared to the general volatility of stocks on the market.
However, about 30% volatility is still very good for a renewable energy ETF, especially in the solar sector, where volatility can reach higher than 50%, especially for newer funds. It’s just a part of the market for renewable energy funds.
SMOG is still committed to reducing pollution on our planet. It can be hard to accept high amounts of instability to invest in companies focused on renewable energy and solely solar ETFs. So if you are willing to trade off some solar stocks and renewable energy for stability, this might be a good fund for you. It’s one of the most stable solar ETFs to buy.
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9. First Trust NASDAQ Clean Edge Green Energy Index – Best Solar ETF for NASDAQ
NASDAQ is one of the most iconic market ratings available, and many investors swear by it. However, in addition to ratings, they also put together their own ETFs and funds you can invest in. The First Trust NASDAQ Clean Edge Green Energy Index or the QCLN is one.
ACCORDING TO NASDAQ, the QCLN is meant to be a modified ETF that reflects the state of clean and renewable energy. QCLN is also one of the best renewable energy ETFs you can invest in. It’s been around for over a decade and has only gone up since then.
Since renewable and clean energy has only grown larger over the last decade and will only grow more prominent in the future, this fund has also grown with the market indicators for the renewable energy sector.
While this fund is excellent for renewable and clean energy, it’s not great for solar stocks. Solar is one piece of the renewable energy puzzle, and while the fund is weighted for the entire market, solar only makes up a small piece. If you mainly want to invest in solar options, or you want solar to make up a large piece of the ETF’s portfolio, you best look elsewhere.
10. Invesco Solar – Best Solar ETF Overall
If you’re talking about solar ETFs, you have to speak about Invesco Solar ETF or their ticket number TANN. It’s the most significant solar ETF on the market and is the number one out of all the solar ETFs to buy.
And it’s famous for good reason. Over ninety percent of its portfolio is focused on the solar industry, and it’s shown good returns over the past couple of years.
While the stock for this fund has dipped recently, it’s likely due to the supply chain issues affecting the solar industry right now.
Renewable energy tends to be on the more technologically heavy side, and all of the renewable energy has been affected by the shortages of microchips and electronics.
Rather than discouragement from entering the market, it would be best to view this as your opportunity to buy-in.
While the stocks are low for now, they’ll surely rise again after the supply chain issues are sorted, making them grow again, making this the best opportunity you’ll get to buy into these funds at a lower price.
While this affects Invesco Solar, it’s also true for all of the ETFs on this list, as well as others I didn’t mention. Now is just a good time to enter the renewable energy market overall.
If you believe in the power and future of solar, this fund was made for you.
TANN not only gets good returns on its stocks but is also dedicated solely to solar power. Its portfolio focuses on the resource gathering, manufacturing, and creation of solar energy, making it perfect for solar enthusiasts all over the globe.
However, the market price for this solar ETF tends to fluctuate as all solar ETFs tend to, so if you can’t handle seeing your stocks fluctuate in price, you may want to choose another fund.
While everyday prices tend to vary, the fund itself has continued to grow over the years, making it perfect for those who want to increase their holdings.
TANN is perfect for those looking for the ideal solar ETF to invest in. Its portfolio consists mainly of solar. It’s the ideal time to buy in, demonstrating performance over the years.
As long as you can handle sudden fluctuations and leave your money in the account, you’re sure to see a good return on your investment.
About Solar ETFs in General
IF none of these ETFs resonate with you, you can do your research to find an ETF that fits both your ideals and your market ideals. However, it’s good to keep the similarity of different solar ETFs in mind, as they do tend to follow specific trends.
Solar ETFs Are Volatile
Most solar ETFs are volatile, with 40% or higher volatility indexes. This is because they focus on one industry and are very sensitive to any changes in price. The prices are also heavily affected by news in the solar industry and market upswings and downswings.
If you can’t handle risk and significant fluctuations in stock prices, You may want to go with a more stable renewable energy ETF.
Solar ETF’s Focus On Manufacturing
There are very few power generation companies that focus solely on solar. Instead, power companies incorporate solar into a more extensive renewable energy portfolio. That’s why solar ETFs tend to focus more on the manufacturing side of solar.
To remain solar ETFs and not renewable energy ETFs, they must focus the majority of the fund on solar-based companies.
If they only invested in power companies, the amount of solar they have in their portfolio would shrink until the majority of the fund has a mix of renewable energies, losing them their core audience.
However, by mainly investing in businesses that manufacture parts needed for solar arrays, they can keep the central part of their portfolio on solar, making them a solar ETF.
Solar ETFs are Not Always About Performance
While most solar ETFs do well amid the price fluctuations and switch to greener energy, this does not mean all solar ETFs are focused on performance. Solar ETFs often target conscientious investors who want to put their money towards a good cause rather than get good returns.
If you want a solar ETF that focuses on performance in addition to helping the environment, do your research.
See how the ETF has performed in years past, look into the fund’s leadership, the strategies they use when investing, so on and so forth. You should always carefully invest any stock you’re putting your money into.
How to Buy Solar Energy ETFs
If you’re wondering how to invest in solar energy ETFs, you can find them by searching your favorite stock exchange. Just put in their name or ticker number, and your platform should take you to their stock page, where you can purchase your shares.
If you want to expand your stocks in green companies and clean energy ETFs, solar ETFs are a good place to start.
They’re sure to grow in the coming years, so consider these long-term investments you are making for the future. Solar ETFs are likely to expand in the coming decades, and you’ll see more of them pop up over time.
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Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.
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