Introduction

The energy transition represents one of the largest structural investment themes of the coming decades. As governments worldwide commit to decarbonization targets and energy security becomes a geopolitical priority, capital is flowing into the companies building the infrastructure for a lower-carbon future.

Exchange-Traded Funds (ETFs) have become one of the most popular vehicles for investors seeking diversified exposure to this shift. Rather than picking individual stocks, ETFs offer a basket of companies operating across specific energy transition themes—from uranium mining and solar manufacturing to copper production and grid modernization.

However, not all Energy Transition ETFs are created equal. One factor that many investors overlook is fund size, measured by Assets Under Management (AUM). Fund size has a direct impact on trading costs, liquidity, and long-term viability—costs that don’t appear in the headline expense ratio.

For a broader overview of energy transition investment options, see our Energy Transition ETFs list. This article examines 8 Energy Transition ETFs that have each accumulated over $1 billion in AUM, spanning nuclear energy, clean energy, solar power, critical minerals, and grid infrastructure. For each fund, we examine the investment strategy, its relevance to the energy transition, and top holdings.

Why fund size matters for ETF investors

When evaluating ETFs, investors naturally focus on expense ratios, holdings, and past performance. But Assets Under Management (AUM) plays a critical role in determining the true cost of owning an ETF—a cost that doesn’t show up in the headline expense ratio. Larger ETFs attract more trading volume, which brings more market makers competing to provide liquidity. This results in tighter bid-ask spreads—the difference between the price a buyer will pay and a seller will accept. For a $1 billion+ ETF, the bid-ask spread might be just $0.01–$0.02 per share, while a smaller fund could have spreads of $0.05–$0.15 or more. On a $10,000 trade, a tight spread of 0.02% costs just $2, while a wider spread of 0.50% costs $50. Over multiple trades, these costs compound significantly.

Fund size also affects pricing accuracy and fund stability. Larger ETFs attract more Authorized Participants (APs)—the financial institutions that create and redeem shares to keep prices aligned with Net Asset Value (NAV). More AP activity means the ETF rarely trades at a meaningful premium or discount to its underlying holdings.

Overview: 8 Energy Transition ETFs Compared

The table below provides a snapshot comparison of the 8 ETFs featured in this article, ordered by AUM. All data is sourced from fund provider websites and financial data providers as February 2026.

Performance data as of February 15th 2026. 1-Year, 3-Year and 5-Year returns are Total NAV Return. Source: fund provider websites.

Expense ratios range from 0.39% (ICLN) to 0.75% (URNM and LIT).

Global X Uranium ETF (URA)

ETF strategy

URA seeks to track the Global X Uranium Index, investing in companies involved across the uranium value chain. The fund provides exposure to uranium miners, developers, explorers, and companies that produce nuclear components. At least 80% of assets are invested in index securities. Visit the URA fund page.

The fund is market-cap weighted with a tilt toward larger producers, resulting in a relatively concentrated portfolio. Cameco, the world’s largest publicly traded uranium company, accounts for roughly 23% of assets.

For more Uranium investment options, see our Uranium ETFs List and Uranium Stocks List.

Energy Transition Credentials

Nuclear energy is increasingly recognized as a critical component of the energy transition. Nuclear provides reliable, baseload, zero-emission electricity that can complement intermittent renewable sources like wind and solar. With uranium spot prices rising above $100 per pound in recent quarters, driven by utility contracting and supply constraints, the economic case for investment in Uranium production has strengthened.

Government support has also expanded. The United States, United Kingdom, France, and several Asian nations have announced policies to extend existing reactor lifetimes and invest in new capacity, including small modular reactors (SMRs).

Top 5 holdings

Source: Global X ETFs. Holdings as of February 2026.

As the largest uranium ETF by AUM, URA benefits from significant liquidity and tight bid-ask spreads. Investors should note the concentrated position in Cameco, which means performance is heavily influenced by a single company.

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID)

ETF strategy

GRID tracks the NASDAQ Clean Edge Smart Grid Infrastructure Index, targeting companies engaged in upgrading electricity grid infrastructure with modern technologies. The fund invests in companies involved in maintaining and operating the electric grid, smart meters, energy storage systems, power management software, and related equipment. Visit the GRID fund page.

With 125 holdings, GRID is the most diversified fund in this list. The portfolio is spread across electrical equipment manufacturers, industrial conglomerates, and utility companies, with no single holding exceeding 9% of assets.

For more Electrical Grid investment options, see our Grid Equipment Stock List.

Energy Transition Credentials

Grid modernization is foundational to the energy transition. Integrating intermittent renewable generation, managing distributed energy resources, deploying electric vehicle charging infrastructure, and building resilience against extreme weather events all require substantial upgrades to existing grid infrastructure.

The International Energy Agency (IEA) estimates that global investment in electricity grids needs to roughly double from current levels to meet climate targets. In the United States alone, billions of dollars in federal funding have been allocated to grid modernization through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

Top 5 holdings

Source: First Trust Portfolios. Holdings as of February 2026.

GRID also offers a modest yield of approximately 0.98%, paid quarterly, which adds an income component that most thematic energy transition ETFs do not provide.

Global X Copper Miners ETF (COPX)

ETF strategy

COPX tracks the Solactive Global Copper Miners Total Return Index, providing exposure to companies primarily engaged in copper mining operations worldwide. The fund is passively managed and holds a globally diversified basket of copper producers. Visit the COPX fund page.

Unlike some commodity ETFs that hold futures contracts, COPX invests in equity securities of mining companies. This means investors are exposed to both copper price movements and company-specific operational factors such as production costs, mine development, and management execution.

For more Copper investment options, see our Copper ETFs List and Copper Stocks List.

Energy Transition Credentials

Copper is often called the “metal of electrification.” It is essential for electric vehicles, renewable energy systems, grid infrastructure, and energy storage. An electric vehicle uses approximately 2.5 to 4 times more copper than a conventional internal combustion engine vehicle.

Solar panels, wind turbines, and battery storage systems are all copper-intensive. As global electrification accelerates, copper demand is projected to grow substantially, while new supply development faces long lead times and permitting challenges.

Top 5 holdings

Source: Global X ETFs. Holdings as of February 2026.

COPX has delivered exceptional recent performance, returning approximately +93.0% in 2025. COPX also pays a quarterly dividing and is currently yielding around 2.2%.

The strong performance reflects rising copper prices driven by energy transition demand, supply constraints, and data center construction. However, copper miners are cyclical, and performance is closely tied to commodity prices, which can be volatile.

VanEck Rare Earth/Strategic Metals ETF (REMX)

ETF strategy

REMX tracks the MVIS Global Rare Earth/Strategic Metals Index, investing in companies involved in the production, refining, and recycling of rare earth elements and strategic metals. The fund provides broad exposure to a group of minerals that are essential for advanced technologies but have concentrated supply chains. Visit the REMX fund page.

Holdings span lithium producers, rare earth miners, titanium and molybdenum companies, and other specialty metal operations. The top 10 holdings account for roughly 60% of assets, creating moderate concentration.

For more Rare Earths investment options, see our Rare Earths Stocks List.

Energy Transition Credentials

Rare earth elements and strategic metals are indispensable for the energy transition. Permanent magnets used in wind turbine generators and electric vehicle motors rely on neodymium, praseodymium, and dysprosium. Battery cathodes require lithium, cobalt, and nickel. Solar cells and power electronics use gallium and germanium.

Geopolitical supply chain concerns have elevated the strategic importance of these materials. Governments in the United States, European Union, and allied nations have launched critical mineral strategies to diversify supply away from concentrated sources.

Top 5 holdings

Source: VanEck. Holdings as of February 2026.

While REMX returned +92% in 2025 amid geopolitical tensions, longer-term performance has been more uneven. The fund’s since-inception annualized return is approximately -3.5%, reflecting the highly cyclical nature of specialty metals markets. Investors should consider the sector’s volatility when evaluating REMX as a portfolio holding.

Sprott Uranium Miners ETF (URNM)

ETF strategy

URNM tracks the North Shore Global Uranium Mining Index, providing focused exposure to pure-play uranium mining companies. Unlike URA, which includes broader nuclear industry participants, URNM concentrates specifically on companies engaged in uranium mining, exploration, development, and production. Visit the URNM fund page.

A distinctive feature of URNM is its holding of physical uranium through the Sprott Physical Uranium Trust (SPUT), which accounts for roughly 12% of assets. This gives investors indirect exposure to uranium spot prices in addition to mining equities.

Energy Transition Credentials

URNM offers more concentrated exposure to the uranium supply thesis than URA. As nuclear power gains recognition as a reliable zero-emission energy source, uranium miners stand to benefit from rising prices and growing contract volumes with utilities. The fund’s pure-play focus means its performance is more directly tied to uranium market dynamics.

The inclusion of the Sprott Physical Uranium Trust adds a unique dimension, providing price exposure without the operational risks associated with mining companies. This structure is particularly relevant as uranium markets tighten and utilities secure long-term supply contracts.

Top 5 holdings

Source: Sprott ETFs. Holdings as of February 2026.

While URNM’s one-year return is lower than URA’s, this reflects its different index composition and the timing of specific holdings’ performance. The fund’s higher expense ratio of 0.75% is the joint-highest among the 8 ETFs in this article, a factor investors should weigh against its more concentrated exposure.

iShares Global Clean Energy ETF (ICLN)

ETF strategy

ICLN tracks the S&P Global Clean Energy Transition Index, providing broad exposure to approximately 100–125 global equities in the clean energy sector. The fund invests across renewable energy producers, energy efficiency companies, smart grid technology firms, and clean energy equipment manufacturers. Visit the ICLN fund page.

At 0.39%, ICLN offers the lowest expense ratio of any ETF in this article, making it the most cost-efficient option for broad clean energy exposure. The fund’s top 10 holdings account for roughly 52% of assets, providing a balance between diversification and meaningful exposure to sector leaders.

For more Green Energy investment options, see our Wind Stocks List and Solar Stocks List.

Energy Transition Credentials

ICLN serves as a broad-based play on the overall clean energy transition. Rather than targeting a single commodity or technology, it provides exposure across the renewable energy value chain—from solar and wind equipment manufacturers to hydrogen producers and utility-scale renewable operators.

This breadth makes ICLN suitable for investors seeking general energy transition exposure without concentrating in a single sub-sector. The fund captures both established renewable energy companies and emerging technology providers.

Top 5 holdings

Source: BlackRock (iShares). Holdings as of February 2026.

The negative longer-term returns reflect the sharp drawdown in clean energy stocks during 2022–2024, driven by rising interest rates, supply chain disruptions, and policy uncertainty. The strong 2025 recovery of approximately 47% has improved the picture, but the fund has not yet recaptured its 2021 highs. Investors should be aware of the sector’s sensitivity to interest rate and policy environments.

Global X Lithium & Battery Tech ETF (LIT)

ETF strategy

LIT tracks the Global X Lithium & Battery Tech Index, investing across the full lithium cycle—from mining and refining to battery production and technology. The fund captures companies involved in lithium extraction, battery cell manufacturing, battery materials production, and related technologies. Visit the LIT fund page.

The portfolio spans the entire battery value chain, giving investors exposure to both upstream mineral producers and downstream technology manufacturers. This integrated approach means LIT’s performance reflects both commodity price dynamics and manufacturing sector trends.

For more Lithium investment options, see our Lithium Stocks List.

Energy Transition Credentials

Lithium is the foundational element of the rechargeable battery revolution. Lithium-ion batteries power electric vehicles, grid-scale energy storage, consumer electronics, and an expanding range of industrial applications. The global shift toward electrified transportation alone is projected to drive significant growth in lithium demand through the end of this decade.

Battery technology is also a critical enabler for renewable energy integration, providing the storage capacity needed to balance intermittent solar and wind generation with electricity demand patterns.

Top 5 holdings

Source: Global X ETFs. Holdings as of February 2026.

Investors should note the heavy concentration in Rio Tinto, which accounts for over 22% of assets. This means the fund’s performance is significantly influenced by a diversified mining conglomerate rather than a pure-play lithium company. The 0.75% expense ratio is also at the higher end of this peer group.

Invesco Solar ETF (TAN)

ETF strategy

TAN tracks the MAC Global Solar Energy Index, providing targeted exposure to the global solar energy industry. The fund invests in companies across the solar value chain, including solar cell and module manufacturers, polysilicon producers, solar installation companies, and downstream solar power generators. Visit the TAN fund page.

TAN is one of the the more concentrated fund in this list. Three to four major holdings typically account for roughly one-third of assets, making it a high-conviction bet on the solar sector.

For more Solar investment options, see our Solar ETFs List and Solar Stocks List.

Energy Transition Credentials

Solar energy has become the lowest-cost source of new electricity generation in many parts of the world. Global solar installations continue to set annual records, with deployment accelerating across both utility-scale projects and distributed rooftop systems.

As manufacturing costs decline and efficiency improves, solar is capturing an increasing share of new electricity generation capacity. Policy support in major markets—including the Inflation Reduction Act in the United States and the European Green Deal—continues to provide tailwinds for deployment.

Top 5 holdings

Source: Invesco. Holdings as of February 2026.

TAN has historically exhibited significant volatility. The fund experienced a sharp drawdown alongside the broader clean energy sector during 2022–2024 as rising interest rates and supply chain disruptions weighed on solar stocks. The sector has recovered in 2025, with TAN returning 47% for the year.

The concentrated portfolio means individual stock performance can have an outsized impact on fund returns.

Conclusion

These 8 ETFs span the major themes of the energy transition, from uranium and critical minerals to solar power and grid infrastructure. Each provides a different angle on the structural shift toward cleaner energy systems, and fund sizes above $1 billion offer investors meaningful advantages in terms of liquidity, trading costs, and fund stability.

Several patterns are worth noting across the performance data. Uranium-focused funds (URA and URNM) and critical mineral funds (COPX and REMX) have delivered the strongest recent returns, reflecting commodity price strength and supply-demand tightness. Grid infrastructure (GRID) has been the most consistent performer across all time horizons, with strong returns and relatively lower volatility. Clean energy funds (ICLN and TAN) have recovered strongly in the near term but still carry negative longer-term return profiles from the 2022–2024 drawdown.

Investors considering these ETFs should evaluate how each fund fits within their broader portfolio, taking into account expense ratios, concentration risk, sector cyclicality, and the liquidity advantages that come with fund sizes above $1 billion. As always, past performance is not indicative of future results, and all investments carry risk.