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5 Environmentally Friendly Energy ETFs Up At Least 35% YTD: Here's Why
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Key Takeaways
Clean energy ETFs have gained up to 89.5% YTD as nations accelerate renewable investments.
Energy security concerns from the Iran war are driving the shift toward renewables.
Falling solar and wind costs continue to support long-term clean energy growth.
Slow poisoning the earth in the name of progress has resulted in industrial and technological advancement. Little did anyone guess how violent the payback could turn. Needless to say, this very threat compels us to cool off the ills of global warming to protect the environment.
While this huge task needs constant effort, June 5 has been particularly set aside as World Environment Day to commemorate the worth of the environment. So long, it was presumed that global warming leads to climate change, causing rising sea levels, drought in one region and flood in others.
But economists have pointed out that global warming can cause job losses, recessions and the resultant slump in the stock market. This makes it imperative for the financial world to boost the socially responsive theme in its product lineup. As a result, we have seen a surge in environmentally friendly and socially conscious ETFs in recent years.
Iran War Turns Clean Energy ETFs Greener This Year
While we are yet to make a shift away from fossil-fuels and their ETFs as these are still cheaper sources of energy, clean-energy ETFs have stayed strong this year due to the Iran war. Iran war is accelerating the global shift to renewables as nations seek energy security & price stability.
United States Brent Oil Fund LP (BNO - Free Report) has jumped 85.8% this year due to the disruptions in the Strait of Hormuz – the sole maritime route connecting the Persian Gulf to the open ocean. To counter these sorts of risks, countries now put more stress on energy dependence and clean energy production. The demand for clean energy is also rising, leading to solid gains in the related ETFs this year (read: Iran War Seen as Reason for Shift to Renewable Energy: ETFs in Focus).
Country-Based Examples
South Korea remains highly dependent on energy imports, sourcing about 94% of its energy needs from abroad. Nearly 72% of its crude oil imports come from the Middle East, leaving it particularly vulnerable to the Iran war, as quoted on CNBC.
South Korea has now set a goal of reaching 100 gigawatts (GW) of renewable energy capacity by 2030. At present, the country has around 37 GW installed, based on data from the Renewable Energy Institute. To bridge this gap, the government plans to prioritize solar and wind energy, with solar expected to play a leading role in the near term.
India, which also depends on energy imports heavily, has rapidly boosted its clean energy transition. In 2024, 83% of power sector investment went to clean energy.The share of non-fossil power generation capacity of India went to 44% in 2024, approaching India’s target of 50% by 2030, per IEA.
Growth of Global Renewable Energy
According to the International Renewable Energy Agency (IRENA), renewables accounted for about 49% of global capacity by the end of 2025. This marks a significant step forward in the transition to sustainable power, as quoted on solarquarter.com. Solar energy took charge of this advancement.
China’s Dominance in Global Solar Industry
Globally, China continues to dominate solar production, controlling the vast majority of polysilicon, wafers, photovoltaic cells and modules. China has invested heavily in renewable power generation and equipment manufacturing.
It’s now the world’s largest solar photovoltaic and wind turbine manufacturer. Electricity from solar, wind and hydropower comprises nearly 36% of China’s total electricity generation, up from 16% in 2000, as quoted on the World Resources Institute.
Cost of Building Non-Fossil-Fuel-Based Infrastructure
Building non-fossil fuel infrastructure requires an estimated $4.5 trillion annually globally to reach net-zero by 2050, per the United Nations. While upfront costs are substantial, costs have been falling.
Hydroelectric power is currently the cheapest energy source, costing $0.05 per kilowatt-hour on average, per Inspire Clean Energy. The price of onshore wind energy fell almost 10% to $44 per megawatt-hour compared to the second half of 2019, per the same source. The cost of solar power has dipped about 4% to $50 per megawatt-hour since 2019.
Concentrated solar power (CSP) is the most expensive renewable, costing an average of $182 a megawatt-hour. Still, it competes well with fossil fuels in some cases, due to its reliability in comparison to other renewables.
Winning Clean Energy ETFs of This Year
Global X Hydrogen ETF (HYDR - Free Report) – Up 89.5% year to date (as of June 4, 2026)
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN - Free Report) – Up 45.8%
Invesco WilderHill Clean Energy ETF (PBW - Free Report) – Up 41.3%
View the Zacks #1 Rank List
Image: Bigstock
5 Environmentally Friendly Energy ETFs Up At Least 35% YTD: Here's Why
Key Takeaways
Slow poisoning the earth in the name of progress has resulted in industrial and technological advancement. Little did anyone guess how violent the payback could turn. Needless to say, this very threat compels us to cool off the ills of global warming to protect the environment.
While this huge task needs constant effort, June 5 has been particularly set aside as World Environment Day to commemorate the worth of the environment. So long, it was presumed that global warming leads to climate change, causing rising sea levels, drought in one region and flood in others.
But economists have pointed out that global warming can cause job losses, recessions and the resultant slump in the stock market. This makes it imperative for the financial world to boost the socially responsive theme in its product lineup. As a result, we have seen a surge in environmentally friendly and socially conscious ETFs in recent years.
Iran War Turns Clean Energy ETFs Greener This Year
While we are yet to make a shift away from fossil-fuels and their ETFs as these are still cheaper sources of energy, clean-energy ETFs have stayed strong this year due to the Iran war. Iran war is accelerating the global shift to renewables as nations seek energy security & price stability.
United States Brent Oil Fund LP (BNO - Free Report) has jumped 85.8% this year due to the disruptions in the Strait of Hormuz – the sole maritime route connecting the Persian Gulf to the open ocean. To counter these sorts of risks, countries now put more stress on energy dependence and clean energy production. The demand for clean energy is also rising, leading to solid gains in the related ETFs this year (read: Iran War Seen as Reason for Shift to Renewable Energy: ETFs in Focus).
Country-Based Examples
South Korea remains highly dependent on energy imports, sourcing about 94% of its energy needs from abroad. Nearly 72% of its crude oil imports come from the Middle East, leaving it particularly vulnerable to the Iran war, as quoted on CNBC.
South Korea has now set a goal of reaching 100 gigawatts (GW) of renewable energy capacity by 2030. At present, the country has around 37 GW installed, based on data from the Renewable Energy Institute. To bridge this gap, the government plans to prioritize solar and wind energy, with solar expected to play a leading role in the near term.
India, which also depends on energy imports heavily, has rapidly boosted its clean energy transition. In 2024, 83% of power sector investment went to clean energy.The share of non-fossil power generation capacity of India went to 44% in 2024, approaching India’s target of 50% by 2030, per IEA.
Growth of Global Renewable Energy
According to the International Renewable Energy Agency (IRENA), renewables accounted for about 49% of global capacity by the end of 2025. This marks a significant step forward in the transition to sustainable power, as quoted on solarquarter.com. Solar energy took charge of this advancement.
China’s Dominance in Global Solar Industry
Globally, China continues to dominate solar production, controlling the vast majority of polysilicon, wafers, photovoltaic cells and modules. China has invested heavily in renewable power generation and equipment manufacturing.
It’s now the world’s largest solar photovoltaic and wind turbine manufacturer. Electricity from solar, wind and hydropower comprises nearly 36% of China’s total electricity generation, up from 16% in 2000, as quoted on the World Resources Institute.
Cost of Building Non-Fossil-Fuel-Based Infrastructure
Building non-fossil fuel infrastructure requires an estimated $4.5 trillion annually globally to reach net-zero by 2050, per the United Nations. While upfront costs are substantial, costs have been falling.
Hydroelectric power is currently the cheapest energy source, costing $0.05 per kilowatt-hour on average, per Inspire Clean Energy. The price of onshore wind energy fell almost 10% to $44 per megawatt-hour compared to the second half of 2019, per the same source. The cost of solar power has dipped about 4% to $50 per megawatt-hour since 2019.
Concentrated solar power (CSP) is the most expensive renewable, costing an average of $182 a megawatt-hour. Still, it competes well with fossil fuels in some cases, due to its reliability in comparison to other renewables.
Winning Clean Energy ETFs of This Year
Global X Hydrogen ETF (HYDR - Free Report) – Up 89.5% year to date (as of June 4, 2026)
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN - Free Report) – Up 45.8%
Invesco WilderHill Clean Energy ETF (PBW - Free Report) – Up 41.3%
Invesco Solar ETF (TAN - Free Report) – Up 36.5%
iShares Global Clean Energy ETF (ICLN - Free Report) – Up 35.1%