As fossil fuels continue to lose market share to renewable energy for power generation, investors have grown more interested in green and renewable energy exchange-traded funds (ETFs). For additional commentary on renewable energy, see our recent newsletter titled, What's Fueling the Rise in Green Energy ETFs?  Below, we provide a brief overview of the methodologies and exposures of three First Trust ETFs focused on the green energy investment theme.

The First Trust NASDAQ® Clean Edge® Green Energy Index Fund (QCLN) tracks US-listed companies that derive the majority of their revenue from clean energy and low carbon activities. The First Trust Global Wind Energy ETF (FAN) is a targeted approach to companies involved in the wind energy industry. The First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund (GRID) is made up of companies in the grid and electric energy infrastructure sector, including companies that are primarily engaged and involved in electric grid, electric meters and devices, networks, energy storage and management, and enabling software used by the smart grid infrastructure sector.

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