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. Even, at times, these options surprise investors. The Fidelity Clean Energy ETF (FRNW) has done just that, providing robust YTD returns despite policy headwinds.
See more: This Overlooked Market Segment Can Surprise Investors in 2026
FRNW charges a 39 basis point fee to track the Fidelity Clean Energy Index. The global, market-cap-weighted index includes developed and emerging markets companies. It derives at least half of revenue from specific activities. Those include clean energy distribution, equipment manufacturing, and technology.
Clean Energy Stocks in 2025: FRNW’s Strong Performance
That approach has helped the FRNW return a healthy 64.6% YTD, per ETF Database data. That has outperformed the fund’s ETF Database Category average of 50.7% in that time, as well. What’s more, the ETF has also provided strong performance over one- and three-month periods, beating its averages in those time frames.
What might explain the ETF’s returns, then, even as clouds gather over clean energy stocks? A company like First Solar (FSLR) can offer some clues. FRNW invests in FSLR as one of its top-weighted holdings, per ETF Database data.
The company may stand out as an indicator that policy headwinds may not stop every clean energy firm from performing for investors. Despite big changes in federal subsidies, FSLR has seen very strong revenue growth, for example. It has seen just about 79.7% quarterly YoY growth to revenue, per YCharts data. Its focus on solar — a long-standing renewable energy source — as well as the lagging impact of past policy support, could be helping the firm perform.
FRNW’s performance as an clean energy stocks ETF may indicate the segment still has a role to play for investors. As the category continues to benefit from innovation and via its ties to energy, it could appeal as an add-on fund for portfolios. In whichever way investors want to use it, the ETF’s strong performance could appeal in the months to come.
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