Clean Energy ETFs Hit Fresh Highs As Renewables Rally Defies Policy Uncertainty

Clean energy ETFs are returning to the spotlight after a strong week that saw several funds notch fresh 52-week highs, as optimism around solar and wind power demand outweighed political noise.

The iShares Global Clean Energy ETF (NASDAQ:ICLN) jumped 5.4% on Wednesday to hit a 52-week high of $18.20, and the Global X Cleantech ETF (NASDAQ:CTEC) adding 7.1% to reach a 52-week high of $62.33. The $2 billion ICLN ETF is up more than 55% this year.

Notably, Gimbal Financial opened a new stake in ICLN during Q3 2025, purchasing 1.14 million shares valued at $17.6 million. The position, disclosed in an SEC filing Tuesday, represented 10.56% of the firm’s reportable assets, making it its second-largest holding.

Other sector heavyweights joined the rally: the SPDR Kensho Clean Power ETF (NYSE:CNRG) jumped 6% to hit a 52-week high of $103.16; ProShares S&P Kensho Cleantech ETF (NYSE:CTEX) increased 6.8% to a 52-week-high of $39.63; the Fidelity Clean Energy ETF (BATS:FRNW) climbed 4.5% to touch its 52-week high of $22.14.

The gains come as clean-energy stocks extend a yearlong rally, fueled by strong corporate spending and falling costs across the renewables value chain.

Despite policy uncertainty, the rally suggests investors believe the transition to renewables is now too economically compelling to derail.

“Despite the rhetoric we’ve seen in the US, private companies are going to still continue with the transition,” said Peter Krull, director of sustainable investing at Earth Equity Advisors. “It’s just cheaper to install clean energy than it is to build a new fossil fuel plant.”

Renewables Power Past Headwinds

Despite challenges that include stalled turbine projects and about-to-expire US tax credits, the clean energy space has sharply outperformed the wider market. The S&P Global Clean Energy Transition Index is up around 50% year to date, well ahead of the S&P 500’s 16% gain.

Global renewable investments have surged to almost $400 billion in the first half of 2025, according to BloombergNEF, with solar accounting for more than half. In the US, renewables represented 93% of the growth in energy capacity this year, per a recent Deloitte report, buoyed by the insatiable energy demand from the boom in AI.

Stocks Powering The Boom

Among key players, First Solar Inc (NASDAQ:FSLR) increased its 2025 sales outlook after record Q3 results, with its stock up 49% year to date. Meanwhile, Bloom Energy Corp (NYSE:BE) has soared 460%, reflecting renewed enthusiasm for clean tech innovation.

Krull noted the irony: “It seems counterintuitive that clean energy was an outperformer during the first Trump administration but a laggard during Biden’s term. Now, of course, we’re seeing it happen again.”

For now, however, investors appear unbothered by political winds.

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