Could 2026 be the year of clean energy stocks? While renewables may not be as popular in the U.S. as in recent years, clean energy investing remains a durable, rewarding theme for investors. The clean energy ETF FRNW, for example, has benefited from growing energy demand.
See more: Balance Portfolios by Pairing ETFs: How Short-Term Bond ETF FLTB Can Help
The Fidelity Clean Energy ETF (FRNW) has produced robust returns over the last twelve months. Specifically, the fund has returned 71% in that time, according to ETF Database data. It has carried that performance momentum into this year, as well, beating its ETF Database Category average over the last month. Per YCharts data, the fund has returned 10.6% YTD as of February 3.
Energy ETF FRNW: A Durable Play in 2026?
Could the fund be poised to produce durable returns for investors this year, as well, building off of that YTD performance? Intriguingly, the rampant demand for energy driven by data center construction has also helped propel clean energy stocks.
The sheer demand for electricity driven by those new data centers may require energy from all kinds of sources, including clean ones. Furthermore, improving fundamentals, too, are boosting clean energy stocks.
FRNW, then, could potentially be a worthy addition to portfolios. The fund, which charges a 39 basis point fee, tracks the Fidelity Clean Energy Index as part of its approach. The index takes a market cap-weighted approach to global energy stocks. The energy ETF includes companies deriving at least 50% of their revenue from business lines like clean energy distribution, equipment manufacturing, and technology.
Given that the data center rush shows little sign of slowing and energy demands remain a serious matter, it may be time to consider FRNW. The fund will hit its fifth year of operation later on in 2026, as well. For those looking at a different way to play technology and energy stocks together, FRNW could intrigue.
For more news, information, and strategy, visit the ETF Investing Content Hub.
Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
1253526.1.0
