First Trust NASDAQ Clean Edge Green Energy Idx Fd ETF performance is closely tied to U.S. political outcomes and federal clean energy policy. QCLN outperformed the S&P 500 and iShares Russell 3000 ETF over the past year, rebounding as the 2026 midterm elections approach. Historical spikes in the CELS Index, which QCLN tracks, followed Democratic policy momentum and major climate-related legislation.
I rate QCLN a Hold due to its high growth exposure but concerning valuation and lackluster long-term performance. QCLN's aggressive positioning in semiconductors and EVs offers growth potential but also increases volatility and company-specific risk. Despite strong clean energy industry tailwinds, QCLN's high valuation multiples are not justified by its historical returns, especially versus peers like CNRG.
I rate QCLN a sell due to heightened volatility and negative risk-adjusted returns, despite recent short-term gains. The "Big Beautiful Bill" slashes key clean energy incentives, severely impacting QCLN's top holdings in EVs and residential solar. Major QCLN holdings like TSLA and RIVN are already experiencing sharp sales declines, compounding the ETF's challenges.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 61,566 | $3.78M | $3.25M | -$523,311.88 | -13.86% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 6,310 | $345,698.37 | $333,168 | -$12,530.37 | -3.62% |
| NA Nizar Araji National Bank Of Canada /FI/ | 5,542 | $283,648.66 | $292,728.44 | $9,079.78 | 3.2% |
Richard Slavik Newbridge Financial Services Group Inc. | 1,000 | $67,970 | $53,420 | -$14,550 | -21.41% |
Brian Baylis Bell Investment Advisors Inc. | 23 | $965.08 | $1,214.86 | $249.78 | 25.88% |
| NASDAQ (NMS) Exchange | US Country |
The fund is designed for investors looking to contribute to and benefit from the growth of clean energy companies across a broad spectrum of market capitalizations within the United States. By committing to invest at least 90% of its net assets in securities that constitute the index aimed at tracking the performance of small, mid, and large-cap clean energy companies, the fund positions itself as a pivotal player in the green investment sphere. The emphasis on clean energy underscores a strategic commitment to environmental sustainability and positions the fund as a vehicle for investors to participate in the transition towards renewable energy sources. Its non-diversified nature means that while it may invest in a narrower range of assets, those investments are carefully selected to align with the fund's strategic objectives in the clean energy sector.
Index-Based Clean Energy Investment
This service involves the fund investing at least 90% of its net assets in the securities that are part of an index specifically designed to monitor the performance of clean energy companies of various market capitalizations in the U.S. By closely tracking this index, the fund allows investors to directly benefit from the growth of the clean energy sector.
Exposure to Varying Market Capitalizations
The fund’s investment strategy includes securities from small, mid, and large capitalization clean energy companies. This diverse exposure aims to benefit from the growth potential of smaller firms while also leveraging the stability and steady returns often associated with larger, established companies. It is a considered approach to capturing the breadth of the clean energy market's opportunities.
Non-Diversified Clean Energy Focus
While being non-diversified may suggest a higher risk due to a concentration in fewer assets, this strategy allows for focused investment in the clean energy sector. It affords the fund the ability to make significant investments in clean energy companies that it identifies as having high growth potential or being pivotal to the sector's advancement. This approach is ideal for investors who are specifically interested in clean energy and are looking for a fund that shares this focus.