Fidelity Clean Energy ETF

FRNW

Market cap $39.6M

Clean energy stocks are an interesting place to be in 2025. The new administration came in and changed the policy landscape surrounding renewables, cutting credits and financial support from the public sector.

Clean energy stocks are an interesting place to be in 2025. The new administration came in and changed the policy landscape surrounding renewables, cutting credits and financial support from the public sector.

Investors are always on the lookout for ETFs that can add more oomph to portfolios. Whether that's via tactical additions or deeper, strategic allocations, the ETF ecosystem offers a growing number of options that can stand out.

FRNW surges to a new 52-week high, fueled by rising clean energy demand and powerful long-term growth drivers.

Clean energy ETFs -ICLN, QCLN, PBW, ACES and FRNW - surge as global investment hits records, with momentum set to test U.S. policy headwinds in Q4.

For investors looking for income through a multi-asset class approach, it might seem sensible to max out the dividend yield within the equity allocation. Yield-focused equity strategies may introduce regional and sector concentrations that can influence returns. Given the relatively attractive yields available in other asset classes, we think it makes more sense to design 'core-like' equity exposure within multi-asset income solutions.

It may not have been on your investment bingo card, but one of the surprising outperforming investment themes this year has been clean energy. One catalyst has been the growing electricity demands related to the rise of AI.

ETFs are all the rage, and amid their accelerated growth, the category has spawned numerous new subcategories, which can also sometimes overshadow underrated ETF segments in favor of shorter-term, flashier contenders. Investors may want that upside, but it's important to also have strong performers over longer time horizons.

Fidelity Investments' clean energy ETF has seen strong recent performance, propelled by top holding GE Vernova (GEV). The Fidelity Clean Energy ETF (FRNW) is based on the Fidelity Clean Energy Index.

It's a distressing time for the climate industry in the U.S. as the current administration attempts to erase decades of energy transition progress. However, despite political pressure and related negative sentiment, the fundamentals for renewable energy keep it relevant in an age of increasing AI demand.