6 Energy Transition ETFs With Over $1bn in Assets: Complete Analysis for Investors
Energy transition ETFs with over $1 billion in assets offer investors liquid exposure to companies driving the shift from fossil fuels to clean energy systems. These six funds—spanning uranium mining, lithium batteries, copper production, and grid infrastructure—have attracted $11.6 billion in combined assets as institutional and retail investors position for the energy transformation.
Unlike broad ESG or sustainability funds that may include unrelated sectors, these ETFs focus exclusively on companies directly involved in energy transition activities. Each fund tracks specific segments of the energy transition value chain, from critical mineral extraction to grid modernization infrastructure.
Energy Transition
The global shift from fossil fuel-based energy systems to renewable and low-carbon alternatives, encompassing renewable energy generation, energy storage, grid modernization, electrification of transport, and the mining of critical minerals essential for clean energy technologies.
ETF Comparison Overview
The following table presents key metrics for all six energy transition ETFs as of August 28, 2024:
| ETF Name | Ticker | Assets ($M) | Expense Ratio | YTD Return | 5-Year Return | Focus Area |
|---|---|---|---|---|---|---|
| Global X Uranium ETF | URA | $4,145 | 0.69% | +51.9% | +30.7% | Nuclear/Uranium |
| Global X Copper Miners ETF | COPX | $2,075 | 0.65% | +31.2% | +18.1% | Copper Mining |
| Sprott Uranium Miners ETF | URNM | $1,677 | 0.75% | +25.6% | +41.0% | Uranium Mining |
| iShares Global Clean Energy | ICLN | $1,558 | 0.41% | +27.8% | -4.5% | Renewable Energy |
| Global X Lithium & Battery Tech | LIT | $1,085 | 0.75% | +16.8% | +8.3% | Lithium/Batteries |
| First Trust Smart Grid Infrastructure | GRID | $1,029 | 0.56% | +20.6% | +8.1% | Grid Infrastructure |
Data as of August 28, 2024. Source: ETF provider websites
Performance Analysis
Uranium-focused ETFs have dominated 2024 performance, with URA delivering 51.9% year-to-date returns as nuclear power gains recognition as a critical component of clean baseload energy. The nuclear renaissance is driven by data center energy demands from artificial intelligence, government policy support, and reactor life extensions.
Copper miners (COPX) have benefited from the electrification megatrend, returning 31.2% YTD. Every megawatt of renewable energy capacity requires approximately 3-5 tons of copper, compared to 1 ton for conventional power generation. Grid infrastructure investments and electric vehicle adoption further amplify copper demand.
Global X Uranium ETF
URAFund Description
The Global X Uranium ETF provides exposure to companies involved in uranium mining and nuclear component production globally. The fund tracks the Solactive Global Uranium & Nuclear Components Total Return Index, offering investors access to the full nuclear fuel cycle from mining to enrichment.
URA holds approximately 48 stocks, with significant positions in pure-play uranium miners like Cameco Corporation and Kazatomprom, as well as diversified miners with uranium exposure. The geographic allocation spans Canada (40%), Australia (15%), Kazakhstan (10%), and other uranium-producing nations.
Nuclear Fuel Cycle
The process of producing nuclear fuel for power generation, including uranium mining, conversion, enrichment, fuel fabrication, and waste management. Each step adds value and presents investment opportunities within the nuclear energy supply chain.
Investment Rationale
Nuclear power provides 10% of global electricity and 25% of low-carbon electricity generation. The International Energy Agency projects nuclear capacity must double by 2050 to achieve net-zero emissions targets. With 440 operational reactors globally and 60 under construction, uranium demand is set to exceed current production capacity by 2025.
The fund benefits from structural supply deficits in uranium markets, with primary mine production meeting only 74% of reactor requirements in 2023. Secondary supplies from decommissioned weapons and government stockpiles are depleting, creating favorable pricing dynamics for uranium producers.
Resources: Fact Sheet | ETF Website
iShares Global Clean Energy ETF
ICLNFund Description
The iShares Global Clean Energy ETF tracks the S&P Global Clean Energy Index, providing exposure to companies producing energy from solar, wind, and other renewable sources. The fund includes renewable energy producers, equipment manufacturers, and technology providers across the clean energy value chain.
ICLN maintains concentrated positions in approximately 100 holdings, with top allocations to First Solar, Enphase Energy, and European utilities like Iberdrola and Orsted. The geographic mix includes United States (40%), Denmark (12%), Spain (8%), and China (7%), reflecting the global nature of renewable energy development.
Investment Rationale
Renewable energy capacity additions reached 473 GW in 2023, with solar and wind accounting for 95% of new power generation globally. The IEA forecasts renewable capacity will triple by 2030, requiring $1.7 trillion in annual investment. Policy support through the Inflation Reduction Act in the US and Green Deal in Europe provides multi-decade growth visibility.
Despite negative 5-year returns due to 2021-2022 rate hikes impacting high-growth stocks, ICLN has recovered strongly with 27.8% YTD returns as interest rate expectations moderate and renewable deployment accelerates.
Resources: Fact Sheet | ETF Website
Sprott Uranium Miners ETF
URNMFund Description
The Sprott Uranium Miners ETF offers pure-play exposure to uranium mining companies through the North Shore Global Uranium Mining Index. Unlike broader nuclear ETFs, URNM focuses exclusively on companies deriving revenue from uranium mining, exploration, and physical uranium holdings.
The fund’s concentrated portfolio of approximately 38 holdings includes major producers like Cameco (20% weight) and Kazatomprom (15%), alongside junior miners and developers. URNM also provides exposure to physical uranium through the Sprott Physical Uranium Trust, offering direct commodity exposure within an equity ETF structure.
In-Situ Recovery (ISR)
A uranium extraction method that dissolves uranium ore underground using injection wells, then pumps the solution to the surface for processing. ISR mining has lower capital costs and environmental impact compared to conventional mining, making previously uneconomic deposits viable.
Investment Rationale
URNM has delivered the strongest 5-year returns (41.0% annualized) among energy transition ETFs, capitalizing on uranium’s transition from oversupply to structural deficit. The fund benefits from uranium spot prices rising from $25/lb in 2019 to $80/lb in 2024, with term contract prices reaching $95/lb.
Nuclear power’s role in achieving net-zero targets is increasingly recognized, with 22 countries pledging to triple nuclear capacity by 2050 at COP28. Small modular reactor (SMR) development and life extensions for existing reactors provide additional demand catalysts beyond new conventional reactor construction.
Resources: Fact Sheet | ETF Website
Global X Lithium & Battery Tech ETF
LITFund Description
The Global X Lithium & Battery Tech ETF invests across the lithium cycle, from mining and refining to battery manufacturing. The fund tracks the Solactive Global Lithium Index, providing exposure to companies positioned to benefit from the growth in lithium-ion battery demand for electric vehicles and energy storage.
LIT’s portfolio includes lithium producers like Albemarle and SQM, battery manufacturers including BYD and Contemporary Amperex Technology (CATL), and electric vehicle makers like Tesla. The fund offers exposure to both established producers and emerging players in battery technology development.
Investment Rationale
Electric vehicle sales reached 14 million units in 2023, representing 18% of total auto sales and driving exponential growth in battery demand. The IEA projects EV sales will reach 17 million in 2024, with battery demand growing from 750 GWh to over 2,000 GWh by 2030.
While lithium prices corrected 80% from 2022 peaks due to temporary oversupply, long-term fundamentals remain strong. Battery manufacturing capacity additions and next-generation technologies like solid-state batteries position LIT to benefit from the electrification megatrend.
Resources: Fact Sheet | ETF Website
Global X Copper Miners ETF
COPXFund Description
The Global X Copper Miners ETF provides targeted exposure to companies engaged in copper mining globally. The fund tracks the Solactive Global Copper Miners Total Return Index, focusing on companies generating significant revenue from copper extraction and processing.
COPX holds approximately 40 companies, with major positions in Freeport-McMoRan, Southern Copper, and First Quantum Minerals. The portfolio spans established producers in Chile and Peru alongside growth projects in Africa and North America, capturing the global copper supply chain.
Copper Intensity in Clean Energy
Clean energy systems require 2-5 times more copper than conventional power generation. An electric vehicle contains 80kg of copper versus 20kg in conventional vehicles. Wind turbines require 3-5 tons of copper per megawatt of capacity, while solar installations need 4 tons per megawatt.
Investment Rationale
Copper demand is projected to grow 50% by 2040, driven by renewable energy, grid expansion, and vehicle electrification. Supply constraints from declining ore grades, limited new discoveries, and 10-15 year development timelines create favorable pricing dynamics.
The fund’s 31.2% YTD return reflects copper prices reaching $4.50/lb amid Chinese stimulus measures and global infrastructure investment. With the average copper mine grade declining 30% over the past decade, existing producers with quality assets command premium valuations.
Resources: Fact Sheet | ETF Website
First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF
GRIDFund Description
The First Trust Smart Grid Infrastructure ETF invests in companies involved in grid modernization, including electrical equipment manufacturers, smart meter providers, energy storage systems, and grid software solutions. The fund tracks the NASDAQ Clean Edge Smart Grid Infrastructure Index.
GRID’s portfolio encompasses established industrial companies like Eaton and ABB, technology providers including Itron and Landis+Gyr, and utilities investing in grid modernization. The fund captures the convergence of electrical infrastructure and digital technology enabling the energy transition.
Smart Grid Technology
Digital communication and control systems that enable two-way power flows, real-time monitoring, and automated grid management. Smart grids integrate renewable energy, manage distributed resources, support EV charging, and improve reliability through predictive maintenance and rapid fault detection.
Investment Rationale
Global grid investment must reach $750 billion annually by 2030 to support renewable integration and electrification. The US Infrastructure Investment and Jobs Act allocates $65 billion for grid modernization, while Europe’s REPowerEU plan targets €300 billion in grid upgrades.
Grid infrastructure companies benefit from multi-decade replacement cycles, regulated utility spending, and technology upgrades for renewable integration. The fund’s holdings provide essential equipment regardless of which renewable technologies dominate, offering diversified energy transition exposure.
Resources: Fact Sheet | ETF Website
Investment Implications and Portfolio Construction
These six energy transition ETFs provide liquid, diversified exposure to companies essential for decarbonization. Rather than picking individual winners, investors can gain broad exposure to critical themes while maintaining reasonable expense ratios averaging 0.63%.
Portfolio Allocation Considerations
For growth-oriented investors: Uranium ETFs (URA, URNM) offer exposure to the highest-growth segment, with nuclear capacity additions accelerating globally. The concentrated nature of uranium mining provides leverage to commodity price movements.
For balanced exposure: Combining copper (COPX) and grid infrastructure (GRID) provides exposure to essential enablers required regardless of which clean technologies dominate. These sectors benefit from replacement demand alongside growth investments.
For technology focus: Lithium and battery technology (LIT) captures the electric vehicle revolution, while clean energy (ICLN) provides direct renewable generation exposure. These funds offer higher volatility but significant upside if deployment targets are met.
Important Note: ETF holdings and allocations change regularly. Investors should review current fund holdings and prospectuses before investing. Performance data as of August 28, 2024.
Risk Considerations
Energy transition ETFs carry sector concentration risk, commodity price exposure, and regulatory uncertainty. Many holdings are growth companies with limited profitability, creating interest rate sensitivity. Geographic concentration in mining jurisdictions adds political risk.
The trillion-dollar scale of energy transition investment creates significant opportunities, but technology disruption, policy changes, and execution challenges will create volatility. Diversification across multiple energy transition themes can help manage these risks while maintaining thematic exposure.
Looking Forward
The IEA projects $4.5 trillion in annual clean energy investment by 2030, triple current levels. This capital deployment will flow through the companies held in these ETFs, from upstream mineral extraction to downstream grid infrastructure. As institutional capital increasingly targets net-zero alignment, energy transition ETFs provide transparent, liquid vehicles for portfolio decarbonization.
With combined assets exceeding $11 billion and growing daily fund flows, these six ETFs have achieved the scale and liquidity required for institutional participation. Their divergent performance profiles—from URNM’s 41% five-year returns to ICLN’s recent recovery—illustrate the importance of diversified energy transition exposure rather than single-sector concentration.