Clean Energy ETFs Slide Post Trump's Remark at UN: A Bumpy Road Ahead?

U.S. President Donald Trump is once again in the headlines following his latest comment, labeling green energy as "stupid", during yesterday’s speech at the United Nations. His remarks, which included calling renewable initiatives a 'scam' and vowing to halt new solar and wind projects, naturally caused an upheaval strong enough to rattle clean energy investors. Consequently, they responded skeptically, which caused the clean energy ETFs to tumble. Invesco Solar ETF (TAN) lost about 3.5% on Sept. 23, 2025, while Invesco WilderHill Clean Energy ETF (PBW) retreated about 2.5%.

The market's reaction highlights how political rhetoric can swiftly impact investor sentiment, resulting in short-term volatility in industries like renewable energy that are sensitive to government policy and subsidies.

Is the Future of U.S. Clean Energy ETFs Doomed?

The current U.S. President has consistently been a supporter of fossil fuels, and his second term, which began at the start of this year, has led to several policy changes that pose a serious threat to the U.S. clean energy industry. In particular, the U.S. administration under Trump introduced legislation, such as the One Big Beautiful Bill Act (“OBBBA”), to repeal or limit various clean energy tax credits and subsidies available under the Inflation Reduction Act (IRA).

It also made efforts to pause or halt the disbursement of funds for initiatives such as electric vehicle charging infrastructure and other clean energy projects like the Orsted wind project. Along with this, heightened tariffs on imported goods bear the risk of increasing installation costs for clean energy projects.

Resultantly, investors have become wary of the U.S. clean energy industry’s prospects in recent times. U.S. investment in renewables slumped 36% in the first half of 2025 compared to the second half of last year (as per BlombergNEF’s September Report).

However, no one can deny the fact that the long-term viability of the renewable energy industry, even in the United States, remains solid. Otherwise, why would the U.S. Energy Information Administration expect solar power to supply the largest share of the increase in the nation’s electricity generation in 2025 and 2026 (as stated in its September 2025 Short-Term Energy Outlook)?

Such projections suggest that the underlying economic and technological drivers of the U.S. clean energy industry are too powerful to be halted by political headwinds. Moreover, the recent interest rate cut by the Federal Reserve came as a major policy stance favorable for the nation’s clean energy industry. Thus, we may expect a strong, albeit potentially bumpy, path for the U.S. clean energy ETFs ahead.

Clean Energy ETFs to Watch

A quick look at the following U.S.-focused clean energy ETFs shows that, while Trump’s latest remark caused a dip, it was just a blip in the broader trend of clean energy investment, given these ETFs’ year-to-date performance.

iShares Global Clean Energy ETF (ICLN)

As the largest clean energy ETF, ICLN offers broad exposure to leading companies in solar, wind, and other renewable sectors worldwide. While it's global in scope, it maintains the largest holding in the United States (24.61%). Its top holding is U.S.-based solar module manufacturer, First Solar (FSLR). FSLR accounts for approximately 8.36% of the fund's weight.

ICLN slumped 1.1% yesterday, but surged 33.5% year to date. The fund charges 39 basis points (bps) as fees.

First Trust Nasdaq Clean Edge Green Energy ETF (QCLN)

It focuses on U.S.-listed companies involved in renewable electricity generation, energy storage, electric vehicles, and those involved in emerging clean energy technologies. The fund’s top holding is California-based electric vehicle manufacturer, Tesla Inc. (TSLA). TSLA accounts for approximately 9.3% of the fund's weight.

QCLN slumped 1.7% yesterday, but surged 23.4% year to date. The fund charges 56 bps as fees.

ALPS Clean Energy ETF (ACES)

ACES consists of companies primarily located in North America that are focused on renewable energy and other clean technology themes. Geographically, it maintains the largest holding in the United States (86.5%), with California-based Tesla taking the top spot in the portfolio with about 5.61% weight, followed by Rivian Automotive (5.05% weight).

ACES slumped 1.4% yesterday, but surged 21.5% year to date. The fund charges 56 bps as fees.

Invesco WilderHill Clean Energy ETF 

This ETF tracks a broad range of U.S. clean energy companies, offering exposure to a diversified portfolio of renewable energy stocks. Geographically, it maintains the largest holding in the United States (73.69%). Its top holding is California-based Bloom Energy (BE). BE accounts for approximately 4.14% of the fund's weight.

PBW surged 42.2% year to date. The fund charges 65 bps as fees.

Invesco Solar ETF

This ETF tracks companies from the solar energy industry. Geographically, it maintains a significant holding in the United States (53.36%). Its top holding is California-based Nextracker Inc. (NXT). NXT accounts for approximately 10.55% of the fund's weight.

TAN surged 27.9% year to date. The fund charges 67 bps as fees.

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