Since the advent of commercially available electricity, coal has been the world’s primary generation source. Although natural gas surpassed combustible black sedimentary rock as the primary source used in the United States in 2016, coal remains dominant globally. That was until the first half of 2025.
According to A Report issued by the Ember Energy Research CenterRenewables combined contributed 34.3% of total global electricity generated in the first six months of the year compared to coal, which represented 33.1% of total generation.
While fossil fuels and the companies that produce them continue to play a large role in the global energy landscape, this massive and historic shift toward clean energy represents a turning point in electricity generation. For investors looking to gain exposure, one ETF provides access to a basket of global renewable energy stocks, and so far this year, the fund has outperformed the S&P 500 by more than 28%.
While the United States lags behind, China and India are ahead in clean energy
The United States still relies heavily on fossil fuels to produce electrical energy. According to US Energy Information AgencyIn 2024, natural gas leads the way with about 38% of total energy production, while crude oil contributes about 27% and coal adds about 10%.
On the other hand, renewable energy sources have been slow to spread. Last year, biofuel, wind and solar production hit a record in 2023, with each source setting a record in 2024. Biofuel production increased 6% year-on-year, while wind and solar power production increased 8% and 25%, respectively. But despite these gains, renewables still lag behind natural gas, crude oil, and coal by a significant margin.
But the offshore electricity generation landscape tells a different story. The two most populous countries in the world – India and China – have turned heavily to sustainability projects, as China has not only significantly increased its use of renewable energy sources, but at the same time reduced its dependence on fossil fuels.
The Ember report indicated that in the first half of 2025, China accounted for 55% of the total growth in solar energy generation globally. In context, the United States represented only 14% of the global total. Meanwhile, the Asian country was also responsible for 82% of wind energy growth, while fossil fuel electricity generation began to rise.
For its part, India saw solar and wind power grow at record rates in the first half of the year, with solar power specifically growing by 25% year-on-year. Ember also stated that renewables in the United States are failing to keep up with strong demand growth. This, in particular, is why investors looking to add clean energy exposure to their portfolios should look for funds that focus on global companies operating in this space.
Global renewable energy ETF outperforms the market
iShares Global Clean Energy ETF today
iShares Global Clean Energy ETF
As of 10/17/2025 at 04:00 PM ET
- 52 week range
- $10.46
▼
$17.10
- Dividend yield
- 1.51%
- Assets under management
- $1.81 billion
As its name suggests, the iShares Global Clean Energy ETF Nasdaq: ICLN It seeks to track the investment results of an index composed of global stocks in the clean energy sector.
The fund’s 129 holdings include companies based in Brazil, China, Denmark, Germany, India, Indonesia, Japan, New Zealand, Portugal, South Korea, Spain, the United Kingdom and the United States.
While some investors may assume that an EIF is fully leveraged in renewable energy stocks, the construction of the fund paints a much different picture. By industry, its top five allocations are:
- Electrical utilities: 29.25%
- Renewable electricity: 21.01%
- Heavy electrical equipment: 19.79%
- Semiconductors: 11.46%
- Electrical components and equipment: 10.82%
iShares Global Clean Energy ETF Dividend Payments
- Dividend yield
- 1.51%
- Annual profits
- $0.25
- Recent dividend payment
- June 20
ICLN Earnings History
With the fund’s two largest holdings being First Solar Nasdaq: FSLR And Bloom Energy New York Stock Exchange: BSo, it’s no wonder why ICLN — and its nearly 42% year-to-date gain — will easily outperform the market in 2025.
First Solar is the largest U.S.-based solar panel manufacturer, and the company has improved its margins by offering end-of-life photovoltaic cell recycling at each of its facilities.
Meanwhile, Bloom Energy designs and manufactures solid oxide fuel cells that autonomously produce electricity on-site to power AI data centers. This type of business has sent BE shares up more than 388% this year.
The ETF’s relatively low expense ratio of 0.41% is fully offset by the fund’s dividend, which is 1.52%, or 25 cents per share annually.
On a quarterly basis, ICLN’s dividend increased by more than 92% from December 30, 2020 to June 16, 2025, when it made its last distribution.
What does Wall Street think of ICLN?
Based on 175 analyst ratings issued over the past year covering seven companies held in ICLN, or just over 28% of the total portfolio, the fund receives a Moderate Buy rating.
Institutional ownership saw more sellers than buyers last year. Despite this, inflows of $143 million exceeded outflows of $114 million during the same period. Short interest is 3.41% of the float value.
Investors looking to benefit from the global shift to renewable energy sources for electrical energy consumption should consider opening a position.
Before you consider the iShares Global Clean Energy ETF, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and the iShares Global Clean Energy ETF wasn’t on the list.
While the iShares Global Clean Energy ETF currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
Market downturns give many investors pause, and for good reason. Are you wondering how to offset this risk? Enter your email address to learn more about using the trial to protect your wallet.
