ALPS Clean Energy ETF

ALPS Clean Energy ETF (ACES), an SS&C fund, is an index fund that tracks the CIBC Atlas Clean Energy Index. The index holds about 37 U.S. and Canadian companies in solar, wind, geothermal, batteries, electric vehicles and grid technology. Its 0.55% annual expense ratio matches the average of similar clean energy funds. It swings much more than the broad market. It lost 79.1% from February 2021 to April 2025 and had not regained that peak as of October 27, 2026.

• Over the year to Oct 27, 2026, ACES returned -25.3%, 9th of 9 among similar funds.
• Its 5-year annualized return was -18.1%.
• In the 2020 COVID crash it fell 43.7% and regained its old high 3.9 months after the low.
• Its worst full calendar year was 2022 (-28.4%); its best was 2020 (+140.3%).
• The deepest fall in its price history was 79.1% (Feb 9, 2021 to Apr 8, 2025), not yet recovered.

As of May 31, 2026, the fund held 37 securities; the ten largest made up 51.26% of assets.

• Over the three months to May 31, 2026, investors added a net $13K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.86%, +6.55%, +17.31%.

ACES is passively managed. Rather than picking stocks, it tries to match the CIBC Atlas Clean Energy Index (ticker NACEX), before fees. CIBC National Trust Company builds the index. To qualify, a company must be based in the U.S. or Canada and trade on a major exchange there. It needs a float-adjusted market value of at least $300 million, which means only shares the public can freely trade are counted. It must also meet trading-volume minimums and get most of its value from clean energy. That covers renewables such as solar, wind, hydro and geothermal, plus clean technology such as electric vehicles, energy storage, lithium, fuel cells and smart grids.

Every stock that passes is included, and the index aims to hold at least 30. Bigger companies get bigger weights, but no stock can exceed 5% on a rebalance date. Any excess weight is spread across the rest. Weights drift between rebalances. As of May 31, 2026, Enphase Energy (6.5%), First Solar (6.2%), Plug Power (6.0%) and Nextpower (5.9%) were all above 5%.

The index is rebuilt and rebalanced each quarter, on the third Friday of March, June, September and December. An index committee approves every change. The fund must keep at least 80% of its net assets in index stocks. It held no derivatives as of May 31, 2026. Its prospectus filed March 30, 2026, reported portfolio turnover of 39%.

• ACES charges 0.55% a year, versus an average of 0.55% for the similar funds below (4th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $689 over 10 years (assuming a 5% annual return).

ACES is a narrow bet on one volatile sector, so it is better suited to a small side position than to anchoring a portfolio.

ACES launched in June 2018, so it has no record from the 2008 financial crisis. In the 2020 COVID crash it fell 43.7% in about a month, then recovered by July 14, 2020. In 2022 it dropped 33.1% by May and briefly recovered by August. A longer slide followed. From February 2021 to April 2025 it lost 79.1%, and it was still below that peak as of October 27, 2026. Its worst calendar year was 2022, at -28.11%. That was one of four straight losing years from 2021 through 2024. Anyone forced to sell shares during such a stretch would lock in deep losses.

The fund provides little income. Its trailing yield was 0.72% as of October 27, 2026, paid quarterly. It costs 0.55% a year, which is $56 in the first year on $10,000 under the SEC's standard example. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.