iShares Global Clean Energy ETF

ICLN

Market cap $2.13B

I downgrade iShares Global Clean Energy ETF (ICLN) to HOLD after a >50% rally and U.S. policy headwinds. ICLN faces significant regulatory risk following an $83B U.S. clean energy loan rollback and repeal of the EPA Endangerment Finding. International diversification and ongoing global monetary easing partially offset U.S. policy risks, but entry point is now less attractive.

The iShares Global Clean Energy ETF has gained 62% in the past year. During the past year, this renewable energy fund has outperformed the S&P 500, the Nasdaq, and some major oil companies.

Green ETFs like ICLN come into focus as global energy transition investments hit a record $2.3 trillion in 2025, led by transport and renewables.

One energy investment is far less risky than investors think. Others look increasingly speculative despite strong headlines. This overlooked high-yielding opportunity keeps quietly compounding cash.

Clean energy stocks handily outpaced AI stocks in 2025, returning 47% compared the the "Magnificent Seven's" 25% average. However, clean energy stocks have already soared before crashing once this decade.

iShares Global Clean Energy ETF had a strong 2025, as it surged 44%, outperforming the S&P 500 and highlighting sector momentum. Supporting its rise was clean energy production growth that outpaced demand by 7% in H1 2025, with China's policy-driven solar uptick leading the expansion. Nuclear energy revival, backed by U.S. policy and AI-driven electricity demand, adds a new growth vector for the sector.

The AI boom created an unexpected problem: insufficient electricity for data centers.

US exit from global climate treaties shifts clean energy focus to globally diversified ETFs like ICLN, PBW and FAN.

iShares Global Clean Energy ETF is reaffirmed as a buy, with strong outperformance versus global equities and a compelling valuation. ICLN offers diversified exposure to global clean energy equities, with a reasonable 18.6x P/E, high 16.9% earnings growth, and a PEG just above one. Technical momentum is robust, with a bullish long-term trend, rising 200-day moving average, and key support near $15.50.

London-based Perbak Capital Partners sold all its 482,918 shares in the iShares Global Clean Energy ETF during the third quarter. The position was worth about $6.33 million.