Clean Energy Market Intelligence - Q1 2026 Review

Welcome to the Q1 2026 issue of Clean Edge’s quarterly newsletter. This edition highlights the latest performance of our clean energy, water, and grid indexes and features our three most recent Data Dives. Q1 was a reminder that energy markets can shift quickly when geopolitics erupt: fossil-fuel benchmarks surged as the Iran war drove oil prices sharply higher, lifting IXE (Energy Select) even as the broader S&P 500 declined. Still, it was far from a bad quarter for Nasdaq Clean Edge indexes. Six of our eight indexes posted positive returns, with seven out of eight indexes outperforming the S&P 500, led by GWE™, CELSI™, and GGINC™.

Over the trailing 12 months, six out of eight of our clean energy and grid indexes broadly outperformed the S&P 500, with five of our indexes, CELS™, GWE™, CELSI™, QGRD™, and QGRDE™, also outperforming the IXE.  Overall, the trailing 12-month period reflected continued strength in clean energy, wind, and grid infrastructure — supported by  electrification, power demand growth, and transmission and grid modernization themes — while water exposure delivered positive but comparatively modest returns.

All returns listed below are total returns, unless otherwise noted.

Q1 2026 INDEX PERFORMANCE (TOTAL RETURN)

On a total return basis, during Q1 2026, the ISE Clean Edge Global Wind Energy™ Index (GWE™) was the top performer, up 18.16%, followed by the Clean Edge International Green Energy™ Index (CELSI™), up 9.58%, and the Nasdaq Clean Edge Global Green Income™ Index (GGINC™), up 6.49%. The grid-focused Nasdaq OMX Clean Edge Smart Grid Infrastructure™ Index (QGRD™) and its exclusions version (QGRDE™) rose 5.50% and 4.83% respectively, while the Nasdaq Clean Edge Green Energy™ Index (CELS™) gained 4.47%. Water indexes lagged during the quarter, with the Nasdaq Clean Edge Global Water™ Index (GHHO™) down 1.53% and the ISE Clean Edge Water™ Index (HHO™) down 4.78%. Overall, the quarter reflected particularly strong performance in wind and international clean energy, solid gains across grid and green income strategies, and weaker results for water-focused exposures.

The S&P 500 was down 4.33% over the same period, while the IXE index (Energy Select) was up 37.87% (increasing about 15% over a one-month period, from the start of the Iran war through the end of the quarter).

12-MONTH INDEX PERFORMANCE (TOTAL RETURN)

On a total return basis, all Nasdaq Clean Edge indexes posted positive results over the 12-month period. Among the clean-energy and grid indexes, the Nasdaq Clean Edge Green Energy™ Index (CELS™) was the top performer, rising 63.22%, followed closely by the ISE Clean Edge Global Wind Energy™ Index (GWE™), up 62.24%, and the Clean Edge International Green Energy™ Index (CELSI™), up 50.20%. The grid-focused Nasdaq OMX Clean Edge Smart Grid Infrastructure™ Index (QGRD™) and its exclusions version (QGRDE™) gained 45.40% and 44.61% respectively, with both substantially outperforming the broader market. The Nasdaq Clean Edge Global Green Income™ Index (GGINC™) increased 27.93%, while water-focused benchmarks were more muted, with the Nasdaq Clean Edge Global Water™ Index (GHHO™) up 9.02% and the ISE Clean Edge Water™ Index (HHO™) up 3.77%.

The S&P 500 was up 17.80% and the IXE index (Energy Select) was up 35.42% over the same period.

First Trust ETFs and UCITS tracking Nasdaq Clean Edge indexes equaled more than $11.5 billion in assets under management (as of April 1, 2026, based on FactSet data).

Monthly Thematic Index Returns (%)

12 Month Period

Over the past 12 months, U.S.-focused clean-energy index CELS™ experienced the greatest volatility, landing in the top spot five times and in the bottom tier four times. Global wind (GWE™) placed in top tier eight of 12 months while QGRD™ (global smart grid and grid infrastructure) placed in top tier seven times. Global water and U.S. water, GHHO™ and HHO™ respectively, showed up in the bottom tier 10 times and 9 times respectively.

Q1 2026 Winners and Losers

Index Constituents Ranked by Price Return

Below is a list of the top 10 best and worst constituent performers (ranked by price return in USD) across all Nasdaq Clean Edge indexes during Q1 2026. Top 10 performers reflected a broad diversity of sectors, spanning solar and storage developers, grid integration, fuel cells, rare earths, and wind.

Clean Edge Insights: Our Latest Data Dives

U.S. Electric Utility-Scale Capacity Additions, by Fuel Type

According to the U.S. Energy Information Administration (EIA), solar and wind have grown from roughly a quarter of new capacity additions in 2010 to more than two-thirds in recent years, reflecting a fundamental shift in how the U.S. grid is expanding. In 2024 alone, the U.S. added a record 31.1 GW of solar capacity, compared to just 0.3 GW in 2010. In 2025, this number fell slightly to 27.7 GW, with a minor rebound in natural gas. But solar remains the dominant source of new electricity, comprising more than half of utility-scale additions last year. This surge in renewables deployment is reshaping the nation’s generation mix. In 2010, renewables (including wind, solar, hydropower, biomass, and geothermal) accounted for just 10.4% of total U.S. electricity generation. By 2025, that share had more than doubled to 25.7%, according to the EIA. Similarly, battery storage has emerged as a central component of capacity additions. Annual installations have soared from less than 1 GW in 2019 to approximately 15.6 GW of new utility-scale storage added in 2025 – more than a quarter of total utility-scale capacity additions in the year. Utility-scale storage has grown from a nascent sector to a U.S. strength in less than five years, with Bloomberg reporting that the U.S. now has enough domestic battery manufacturing capacity to meet demand for new installations. Contrary to federal administrative maneuverings, we are not seeing fossil fuel dominance in the electricity sector. Instead, it is solar, wind, and storage that are redefining electricity expansion in the U.S., providing not just new generation, but the increasing storage flexibility needed to maintain demand response in a shifting landscape dominated by AI data centers and other electrification trends.

Clean Energy vs. Traditional Energy

Over the past decade, there has been a rapid rise in clean energy, energy storage, and electrification globally. Solar power, for example, is now the world’s fastest growing source of electricity. According to energy research firm Ember, in 2014 solar contributed just 15% of electricity generation capacity additions globally (behind natural gas, coal, and wind). A decade later in 2024, solar was the largest new energy source, accounting for 69% of global electricity capacity additions. That growth has continued in the first six months of 2025 with more than 380 GW of new solar installed globally, up 64% over the 232 GW installed in the same period in 2024, according to Ember. And global investments in clean energy overall, including renewables, power grids, and EVs, hit a record $2.3 trillion last year according to Bloomberg New Energy Finance, more than double the investments made in 2020. Although the valuations of U.S.-listed clean energy came under pressure between 2021 and 2024 due to high interest rates, supply chain disruptions, and other headwinds, share prices began to rebound last year. Over the past decade, U.S.-listed pure-play clean energy has outperformed fossil fuels, including one year (2020) as one of the top-performing indexes covering any industry, gaining 184.43%. The Nasdaq Clean Edge Green Energy Total Return™ Index (CEXX™) grew 201.34% over the past ten years (through December 31, 2025), compared to 124.53% growth for IXETR (the Energy Select Sector Total Return Index of S&P 500 companies involved in the development or production of energy, namely oil and gas) over the same period.

Grid Infrastructure vs. Global Infrastructure