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Best Clean Energy ETFs in Canada (2026)

Updated

If you want the broader ETF framework before adding a clean-energy tilt, start with our ETFs and index funds hub.

Clean Energy ETFs Listed on the TSX

ETFTickerMERHoldingsDistributionStrategy
Harvest Clean EnergyHCLN0.69%40Annually, if anyThe 40 largest clean energy issuers from its global investable universe
BMO Clean Energy IndexZCLN0.39%100AnnuallyS&P Global Clean Energy Index

HCLN’s MER is as of June 30, 2026 (management fee 0.40%); ZCLN’s is from its ETF Facts. Holdings: HCLN’s target number of issuers and ZCLN’s total number of investments.

US-Listed Clean Energy ETFs (Accessible from Canada)

ETFTickerExpense ratioFocus
iShares Global Clean EnergyICLN0.38%Solar, wind and other clean energy companies globally (105 holdings)
First Trust Global Wind EnergyFAN0.60%Wind energy
Global X HydrogenHYDR0.50%Hydrogen economy
First Trust NASDAQ Clean Edge Green EnergyQCLN0.59%Clean energy technology

Expense ratios from each issuer’s site, September 2026. US-listed funds trade in US dollars, so buying them usually involves a currency conversion; US-listed vs Canadian-listed ETFs compares the costs and the tax treatment.

Clean Energy Sub-Sectors

Sub-SectorExample companies (held by HCLN)Growth Driver
SolarFirst Solar, Enphase, SolarEdgeDeclining costs, rooftop adoption
WindVestas, Nordex, ØrstedOnshore and offshore wind expansion
Utilities (renewable)Brookfield Renewable, Northland Power, Meridian EnergyUtility-scale clean generation
Hydrogen and fuel cellsPlug Power, FuelCell EnergyHydrogen for heavy industry and transport
Energy storageFluence Energy, EnerSys, Eos EnergyBattery storage for grid stability

Example Holdings in a Global Clean Energy ETF

HCLN (Harvest Clean Energy ETF), as at August 31, 2026

CompanyTickerCountrySub-Sector
Vestas Wind SystemsVWSDenmarkWind equipment
First SolarFSLRUSSolar equipment
Enphase EnergyENPHUSSolar equipment
SolarEdge TechnologiesSEDGUSSolar equipment
ØrstedORSTEDDenmarkRenewable power generation
EDP RenováveisEDPRPortugalRenewable power generation
Plug PowerPLUGUSHydrogen fuel cells
Brookfield Renewable CorporationBEPCCanadaHydro, wind, solar
Northland PowerNPICanadaRenewable power generation
Fluence EnergyFLNCUSBattery and energy storage

Each of HCLN’s holdings was between 1.7% and 3.3% of the fund on that date; holdings change at each semi-annual rebalance.

Canadian Clean Energy Stocks

CompanyTickerFocus
Brookfield RenewableBEP.UN / BEPCHydro, wind, solar, storage (global)
Northland PowerNPIOffshore and onshore wind, solar
Ballard Power SystemsBLDPHydrogen fuel cells

Clean Energy ETF Performance

HCLN’s calendar-year NAV returns, as at August 31, 2026:

YearHCLN return
2021-25.69%
2022-15.03%
2023-22.24%
2024-21.33%
202530.17%

Its annualized return was 6.81% over one year, -3.07% over three years and -9.27% over five years. For a US-listed fund such as ICLN, the issuer’s own page shows current returns.

Past performance does not guarantee future results. Clean energy has been volatile.

Clean Energy vs Traditional Energy

For the non-renewable side of that tradeoff, see best energy ETFs in Canada.

FactorClean Energy ETFsTraditional Energy ETFs (XEG)
Recent performanceHCLN lost money each year from 2021 to 2024, then rose in 2025See the energy ETFs guide
YieldLow (ICLN: 1.06% trailing 12-month yield)Higher (XEG: 2.13% distribution yield)
Government supportSubsidies, tax credits, mandatesCarbon pricing on industrial emitters, ESG pressure
Interest rate sensitivityHigh (capital-intensive projects)Moderate
Long-term demand outlookStructural growthUncertain (peak oil debate)
VolatilityVery highHigh
ESG alignment✅ Full❌ Excluded by many ESG screens

ICLN’s yield is as of August 31, 2026 and XEG’s as of September 23, 2026; both change with prices and distributions.

Clean Energy vs ESG ETFs

FeatureClean Energy ETF (ICLN, HCLN)ESG ETF (XESG, ESGA)
FocusRenewable energy companies onlyAll sectors, ESG-screened
Holds oil companies?NoSometimes (if they score well against peers)
Holds banks?NoYes (if ESG-compliant)
DiversificationLow (one sector)High (all sectors)
RiskSector concentrationSimilar to broad market
Best forSector convictionValues-aligned broad investing

If you want a values-based whole-portfolio approach instead of a renewables sector bet, compare best ESG ETFs in Canada.

Risks

RiskDetail
Interest rate sensitivityClean energy projects rely on borrowing, so higher rates weigh on valuations
Policy dependenceRelies on government subsidies and mandates
Technology riskRapid innovation can make current tech obsolete
Profitability challengesSome pure-play clean energy companies are not yet consistently profitable
VolatilityHCLN lost money in each calendar year from 2021 to 2024
ConcentrationHeavy weighting in solar and wind: limited diversification
CompetitionChina’s share of every main solar panel manufacturing stage exceeds 80% (IEA, 2022), which compresses margins elsewhere
Greenwashing riskSome ETFs include companies with questionable green credentials

Portfolio Allocation

The approaches below are illustrations of how investors size a sector position, not recommendations.

ApproachClean Energy WeightImplementation
Small satellite3–5%ICLN or HCLN alongside core portfolio
ESG tilt5–10%Clean energy + ESG-screened core
Green conviction10–15% maxMultiple clean energy plays + Canadian renewables
Via utility ETFsIndirectUtility ETFs hold utilities, some of which own renewable power
Via broad marketIndirectXEQT’s total-market ETFs already hold large clean energy companies

That higher-level sizing decision should come after you set your core allocation with asset allocation by age.

Sources

The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.