First Trust NASDAQ Clean Edge Green Energy Index Fund

QCLN

Market cap $549M

Despite policy headwinds, surging AI-driven power demand and falling renewable costs are powering clean energy ETFs higher.

A new U.S.-China rare earth deal lifts hopes for clean energy ETFs, like ICLN and PBW, as supply chains stabilize and investor optimism returns.

Renewables have overtaken coal in global power generation, putting clean energy ETFs like ICLN, QCLN and PBW in sharp investor focus.

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.

A Fed rate cut today could ease financing for renewables, boosting U.S.-focused clean energy ETFs that are already gaining momentum.

PBW, QCLN, CNRG, and HAIL have been hovering around 52-week highs as clean energy regulations, Ford's EV plan, Powell's rate cut hints and Tesla rally sparked momentum.

Solar shares rebounded this week after the U.S. Treasury and IRS issued new tax credit guidance that alters the way clean-energy projects qualify for subsidies. The rally was led by First Solar FSLR, which surged after the agencies eliminated the long-standing “5% safe harbor” rule on large-scale projects.

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.

TSX: FUD, FSL, ETP, CIBR, QCLN, FHG/FHG.F, FHH/FHH.F, FDL, FINT, FST & BLCK Cboe CA: FJFB, FJFG, SDVY/SDVY.F & SDVD TORONTO, June 23, 2025 (GLOBE NEWSWIRE) -- FT Portfolios Canada Co. (“First Trust Canada”) is pleased to announce cash distributions for its Exchange Traded Funds (“First Trust ETFs”) listed on the Toronto Stock Exchange and Cboe Canada for the month ending June 30, 2025. The cash distributions are payable on July 8, 2025 to Unitholders of record on June 30, 2025 with an ex-dividend date of June 30, 2025.

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.