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Additional Reading from MarketBeat Media As Global Renewables Surpass Coal, This ETF Offers Smart ExposureWritten by Jordan Chussler. Published 10/19/2025. 
Key Points - According to a new report, renewable energy has overtaken coal as the primary source of electricity around the world.
- The iShares Global Clean Energy ETF provides exposure to companies operating in the clean energy industry around the world.
- The fund is having a strong year with a YTD gain of nearly 42%, but more should be in store as renewables continue to dominate electric power production.
Since the advent of commercially available electricity, coal has been the world's primary generation source. Although natural gas overtook coal as the leading fuel in the United States in 2016, coal remained dominant globally—until the first half of 2025. According to a report published by energy think tank Ember, renewable energy sources collectively supplied 34.3% of global electricity in the first six months of the year, compared with coal's 33.1%. While headlines focus on Tesla's car sales, tech analyst Jeff Brown says the real story is Tesla's role in a $25 trillion AI revolution — one that Nvidia's CEO himself has called a "multi-trillion-dollar future industry" — and he's uncovered a little-known stock 168 times smaller than Nvidia that could be positioned to ride this breakthrough. Click here now to see the full report While fossil fuels and the companies that produce them still play a large role in the global energy mix, this historic shift toward clean energy marks an inflection point in electricity generation. For investors seeking exposure, one ETF offers a basket of global renewable energy stocks and has outperformed the S&P 500 by more than 28% so far this year. While the U.S. Lags, China and India Forge Ahead With Clean Energy The United States remains heavily reliant on fossil fuels for electric power. According to the U.S. Energy Information Administration, in 2024 natural gas supplied roughly 38% of electric generation, crude oil contributed about 27%, and coal added roughly 10%. Renewables have been gaining but still trail the major fossil fuels. In 2024 biofuels, wind and solar each set new annual records: biofuels production rose 6% year over year (YOY), wind grew 8% and solar jumped 25%. Despite those gains, renewables remain behind natural gas, oil and coal in total share. Abroad, the picture is different. The world's two most populous nations—India and China—are pushing heavily into sustainability projects. China has both rapidly expanded renewables and reduced reliance on fossil fuels. Ember's report notes that China accounted for 55% of global solar generation growth in the first half of 2025, while the United States accounted for 14%. China was also responsible for 82% of wind energy growth, and its electricity generation from fossil fuels has begun to plateau. India saw record growth in solar and wind in the first half of the year, with solar growing 25% YOY. Ember also found that in the United States renewables are failing to keep pace with strong demand growth. That is one reason investors who want clean-energy exposure should consider funds that focus on global companies in the space. A Market-Beating Global Renewable Energy ETF As its name suggests, the iShares Global Clean Energy ETF (NASDAQ: ICLN) seeks to track an index of global equities in the clean energy sector. The fund's 129 holdings include companies based in Brazil, China, Denmark, Germany, India, Indonesia, Japan, New Zealand, Portugal, South Korea, Spain, the United Kingdom and the United States. While some investors may assume the ETF is exclusively tied to renewable developers, its sector construction is broader. By industry, its top five allocations are: - Electric utilities: 29.25%
- Renewable electricity: 21.01%
- Heavy electrical equipment: 19.79%
- Semiconductors: 11.46%
- Electrical components and equipment: 10.82%
With top holdings such as First Solar (NASDAQ: FSLR) and Bloom Energy (NYSE: BE), it's no surprise ICLN—up nearly 42% year-to-date—has outperformed the market in 2025. First Solar is the largest U.S.-based solar panel manufacturer and has improved margins by operating photovoltaic recycling at its facilities. Bloom Energy designs and manufactures solid oxide fuel cells that produce electricity onsite—technology increasingly deployed for power in AI data centers—which has helped BE shares surge more than 388% this year. The ETF's expense ratio of 0.41% is partially offset by the fund's dividend, which yields 1.52% (about $0.25 per share annually). ICLN's quarterly dividend per share has increased more than 92% between Dec. 30, 2020, and its most recent distribution on June 16, 2025. What Wall Street Thinks of ICLN Aggregating 175 analyst ratings issued over the past year for seven companies that represent slightly more than 28% of ICLN's portfolio, the fund carries a Moderate Buy rating. Institutional ownership data showed more sellers than buyers over the past year. Despite that, net inflows of $143 million exceeded outflows of $114 million during the same period. Short interest stands at a modest 3.41% of the float. Investors looking to capitalize on the global shift to renewable electricity may consider opening a position in a fund such as ICLN to gain diversified exposure to the sector.
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