3 Clean Energy ETFs Up 50% or More: QCLN, LIT, and BATT for the Green Transition in 2026

Quick Read

• First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) gained 57% over the past year with the broadest clean energy exposure across industrials (32%), information technology (30%), and consumer discretionary (16%), while Global X Lithium & Battery Tech ETF (LIT) returned 74% with concentrated 21% position in Rio Tinto and heavy China exposure, and Amplify Lithium & Battery Technology ETF (BATT) gained 67% with diversified battery supply chain exposure including copper miner Freeport-McMoRan (FCX) at 5.6% and grid-scale energy storage focus.

• Lithium demand is projected to grow 20% annually through 2026 with potential supply shortages as early as 2028, making the choice between these funds depend on whether investors want broad clean energy coverage, concentrated lithium supply chain exposure, or deeper battery materials ecosystem participation.

All three of these ETFs are up more than 50% over the past year, yet they tell very different stories about how to invest in the green transition. The choice between them depends on whether you want broad clean energy coverage, concentrated lithium supply chain exposure, or a deeper bet on the full battery materials ecosystem.

The Broadest Clean Energy Bet

First Trust Nasdaq Clean Edge Green Energy Index Fund (NASDAQ:QCLN) is the most diversified of the three. Launched in February 2007, it is one of the oldest clean energy ETFs available, with $576 million in assets and an expense ratio of 0.56%.

The fund tracks the Nasdaq Clean Edge Green Energy Index, which pulls companies from across the entire clean energy value chain. Its largest positions include Bloom Energy at 12.8%, ON Semiconductor at 8.8%, Tesla at 7.7%, and Rivian at 6.9%. That mix tells you something important: this is not a solar ETF or a wind ETF. It holds power electronics, fuel cells, EV manufacturers, solar installers, and battery materials companies all in one portfolio.

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The sector breakdown reflects that breadth. Industrials make up 32% of the fund, information technology 30%, and consumer discretionary 16%, with smaller allocations to materials and utilities. For investors who want a single fund to cover the green transition without betting heavily on any one sub-theme, QCLN delivers that.

The tradeoff is that diversification cuts both ways. When lithium stocks surged in 2025, QCLN captured some of that through its materials holdings, but not as much as a dedicated lithium fund would. Over the past year, QCLN gained 57%, which is strong, but it trailed both LIT and BATT over the same period. The fund also carries meaningful single-stock concentration at the top, with Bloom Energy alone representing nearly 13% of assets.

One structural note: portfolio turnover is just 23%, meaning the fund holds its positions with conviction rather than trading frequently. That low turnover keeps transaction costs down and makes the fund’s behavior more predictable over time.

The Lithium Pure-Play With a Global Footprint

Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) is the most direct way to own the lithium supply chain. With $1.8 billion in assets, it is the largest fund on this list by a wide margin, and its 0.75% expense ratio reflects its specialized mandate.

The fund tracks the Solactive Global Lithium Index, covering lithium miners, battery manufacturers, and EV makers from extraction all the way to the finished vehicle. What makes LIT distinct is the concentration of that exposure and its heavy international weighting. Rio Tinto alone represents 21% of the portfolio, an unusually large single-position weight for a thematic ETF. Beyond that, the fund holds significant positions in Korean battery makers like Samsung SDI and LG Energy Solution, Chinese producers like CATL and Ganfeng Lithium, and Japanese companies like Panasonic and TDK.

That international tilt is both the fund’s strength and its primary risk. China controls a dominant share of global battery cell manufacturing, and LIT gives investors direct access to that production capacity. But it also means the fund is exposed to Chinese regulatory actions and geopolitical tensions in ways that a US-focused fund would not be. In November 2025, China’s Guangzhou Futures Exchange intervened to curb speculative lithium trading, sending lithium carbonate contract prices lower and pressuring the fund.

Over the past year, LIT gained 74%, the strongest performance of the three funds. A Seeking Alpha piece from December 2025 warned that LIT’s 60% year-to-date surge at that point was driven more by sentiment than fundamentals, a concern worth weighing given the size of the move. Lithium demand fundamentals remain strong over the long term, with global consumption projected to grow approximately 20% annually through 2026, but the near-term picture is more complicated by oversupply concerns and shifting battery chemistries.

The Broadest Battery Supply Chain Exposure

Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT) occupies a middle ground that is easy to overlook. At $122 million in assets, it is the smallest fund here, but its mandate is arguably the most complete. Where LIT focuses tightly on lithium and batteries, BATT explicitly includes grid-scale energy storage alongside EVs, giving it exposure to a battery demand driver that the other two funds treat as secondary.

The portfolio reflects this. BHP Group is the top holding at 7.7%, followed by Tesla at 6.7%, CATL at 6.5%, and BYD at 5.6%. Freeport-McMoRan, a major copper and critical minerals miner, holds a 5.6% weight, which signals that BATT is thinking about battery supply chains more broadly than just lithium. Copper is essential for EV motors, charging infrastructure, and grid storage systems, and its inclusion reflects the fund’s wider lens on the energy transition.

BATT returned 66% in 2025, outperforming the Nasdaq-100’s 22% gain by a wide margin over the same period, with performance driven by battery material producers rather than just EV manufacturers. Over the past year, the fund gained 67%.

The fund’s expense ratio is 0.59%, slightly below LIT. But its smaller size means trading spreads may be wider than the other two funds, which matters for investors who trade frequently or in larger sizes. Portfolio turnover of 73% is also notably higher than QCLN’s 23%, reflecting more active index rebalancing and potentially higher internal transaction costs.

A supply concern worth understanding: a Wood Mackenzie study published in March 2026 warned that global lithium demand could exceed 13 million tons by 2050, with supply shortages possible as early as 2028 without substantial investment. That structural dynamic underpins the long-term case for all three funds, but BATT’s mining-heavy composition positions it to benefit specifically from increased capital spending on critical mineral extraction.

Matching the Fund to Your Goals

QCLN offers clean energy exposure without concentrating heavily in lithium or any single sub-theme. Its 19-year track record, low turnover, and broad coverage across solar, wind, EVs, and power electronics make it the most balanced of the three. LIT provides maximum exposure to the lithium value chain, with the concentrated Rio Tinto position and heavy China weighting that entails. BATT is built around the view that the battery supply chain extends beyond lithium to copper, cobalt, and grid storage infrastructure, and its mining-heavy composition reflects that broader thesis.

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