FSA highlights five clean energy funds that are outpacing the wider equity market as the once-neglected investment theme makes a comeback.

After languishing for several years post-Covid, clean energy stocks are making a comeback as artificial intelligence’s demand for energy revives the sector.

The sector crashed following a bubble in late 2020 but it has since started to gain significant momentum after the tariff announcements in April of 2025 and it has accelerated after the energy disruption caused by the Iran war.

As a result, over the past year, clean energy equity indices have more than doubled the wider equity market return.

Two widely tracked clean energy indices, the Nasdaq Clean Edge Green Energy index and the Solactive Clean Energy index are up 89.8% and 72.7% respectively, over the past twelve months.

Against this backdrop, FSA highlights five funds available to either Hong Kong or Singapore investors with an explicit green or clean energy mandate that are outperforming the wider market, according to data compiled from FE fundinfo.

Pictet Clean Energy Transition

This $6.3bn fund is up 38.27% year-to-date and has delivered a 64.63% return over the past twelve months.

The strategy aims to give investors exposure to the “underestimated long-term persistent growth” in companies driven by the clean energy transition, according to its factsheet.

The fund is managed by Xavier Chollet, Manuel Losa, Pam Liu and Guillaume Martin-Achard. It has benefitted from the outperformance of large positions in semiconductor stocks such as Broadcom, Marvell Technology and Applied Materials.

L&G Clean Energy UCITS ETF

This exchange-traded-fund (ETF) is up 36.24% year-to-date and 72.2% during the past year. It tracks the Solactive Clean Energy index.

The index tracks the performance of a basket of stocks engaged in the global clean energy industry.

Some of its largest holdings include SolarEdge Technologies, SMA Solar and nVent Electric which are up 258%, 194% and 140% respectively over the past year.

BGF Sustainable Energy

This $5.6bn fund managed by BlackRock is up 22.38% year-to-date and has delivered a 50.03% return during the past year.

It aims to invest at least 70% of its assets in sustainable energy companies involved in sectors such as renewable energy technology, alternative fuels, energy efficiency, and enabling energy and infrastructure.

Managed by Alastair Bishop and Charles Lilford, some of its largest holdings include Linde, Nextera Energy and First Solar.

BNP Paribas Clean Energy Solutions

This $1.2bn fund has delivered a 22.59% return year-to-date and is up 75.09% over the past year.

It invests globally in listed companies that provide clean energy solutions such as power equipment and critical materials, clean energy production and grids, and energy efficiency and technologies.

Managed by Ulrik Fugmann and Edward Lees, some of its top holdings include Legence Corp, Siemens Energy and Array Technologies.

Schroder Global Alternative Energy

This $900m fund is up 14.96% year-to-date and up 45.4% over the twelve months.

It aims to give investors an actively managed thematic exposure to the low-carbon energy transition, including renewable power and energy storage. It is managed by Mark Lacey, Alex Monk and Felix Odey.

According to a recent fund update, some of its top performers for the first quarter of the year included renewable energy firms Boralex and EDPR.