A Clean Energy ETF Soared 50% While Everyone Moved On

"iShares Global Clean Energy ETF ( NYSEARCA:ICLN) delivered a 49% return over the past year, nearly tripling the S&P 500's 18% gain. The fund tracks approximately 100 global companies in renewable energy, utilities, and clean technology. With $1.9 billion in assets and a 0.39% expense ratio, ICLN provides broad exposure to solar, wind, fuel cells, and electric utilities positioned to benefit from surging power demand."

"The return engine is straightforward: these companies generate revenue by producing electricity or the equipment that generates it. As hyperscale data centers proliferate to support AI workloads, power demand forecasts have climbed sharply, creating direct revenue growth for renewable producers and accelerated approval processes for new projects in the U.S. and EU. ICLN's 49% return significantly outpaced the S&P 500's 18% gain over the same period."

"ICLN's top holding, Bloom Energy ( NYSE:BE), represents 11% of the portfolio and surged 435% over the past year. That single position contributed roughly 48 percentage points to the ETF's 49% return. Nextracker ( NASDAQ:NXT), the third-largest holding at 7%, doubled with a 108% gain. First Solar, the second-largest position at 8%, gained just 21%. This concentration reveals a critical tradeoff: ICLN's performance depends heavily on a handful of winners."

Surging AI workloads have raised electricity demand from hyperscale data centers, elevating clean-energy companies into critical infrastructure. The iShares Global Clean Energy ETF (ICLN) returned 49% over the past year, tracking roughly 100 global renewable, utility, and clean-technology companies with $1.9 billion assets and a 0.39% expense ratio. Renewables and equipment makers benefit from higher power demand forecasts and faster project approvals in the U.S. and EU. Performance depended heavily on Bloom Energy, which represents 11% of the fund and surged 435%, contributing roughly 48 percentage points. ICLN remains 36% below its early-2021 peak after a prior 57% crash.

Read at 24/7 Wall St.