First Trust Global Wind Energy ETF

First Trust Global Wind Energy ETF (FAN) is an index fund that tracks the ISE Clean Edge Global Wind Energy Index. The index holds turbine makers, wind-farm owners and their suppliers, mostly outside the US. Unlike broader clean energy funds, it gives 60% of the index to "pure play" wind companies such as Vestas and Nordex. Its 0.60% expense ratio is slightly above the 0.56% peer average, and its price swings are large.

• Over the year to Oct 27, 2026, FAN returned +10.3%, 1st of 7 among similar funds.
• Its 5-year annualized return was +1.6% and its 10-year +7.7%.
• In the 2020 COVID crash it fell 34.7% and regained its old high 3.7 months after the low.
• Its worst full calendar year was 2010 (-31.2%); its best was 2013 (+65.2%).
• The deepest fall in its price history was 79.8% (Jun 27, 2008 to Jul 24, 2012), recovered by Dec 23, 2020.

As of Jun 30, 2026, the fund held 48 securities; the ten largest made up 54.71% of assets.

• Over the three months to Jun 30, 2026, investors added a net $55.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +8.96%, -2.53%, -4.44%.

FAN tries to match the ISE Clean Edge Global Wind Energy Index, before fees. Nasdaq, Inc. maintains the index, and the fund normally keeps at least 90% of its net assets in the index's stocks. Clean Edge decides which companies qualify. They must work in the wind industry, for example by running wind farms, selling wind-generated power, or making machinery and materials built for wind. Stocks must also pass size, float (shares freely available to trade) and liquidity tests. They must have traded on an eligible global exchange for at least three months.

The index puts companies in two groups. "Pure Play" companies get 50% or more of their revenue or generating assets from wind, and together they receive 60% of the index. "Diversified" companies have some wind business and share the other 40%. Within each group, weights follow the market value of freely traded shares, with caps. The five largest pure plays are capped at 8% each, other pure plays at 4%, and each diversified company at 2%.

The index is rebalanced and reconstituted twice a year, and the fund follows shortly after. As of June 30, 2026, the fund held 48 stocks. The top 10 made up 54.7% of assets, led by Vestas Wind Systems (8.7%), Nordex (8.2%) and Orsted (7.5%). Most holdings trade in foreign currencies, so exchange rates also move the fund's value.

• FAN charges 0.6% a year, versus an average of 0.56% for the similar funds below (4th of 7, cheapest first).
• Of that, 0.4% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.01% waiver from the adviser, which may end.

FAN is a concentrated, volatile bet on one industry, so at most it fits as a small slice next to broader holdings.

FAN adds targeted exposure to wind power, mostly through European, Canadian and Israeli companies. Its history shows the risk. It launched in June 2008, fell 79.8% by July 2012, and took 101 months after that low to recover, until December 2020. It dropped 34.7% in the 2020 COVID crash but recovered in 3.7 months. In the 2022 bear market it fell 28.8% and took 33.3 months to recover, until July 2025. Its worst calendar year was 2010, down 31.2%, and it lost money every year from 2021 through 2024. Anyone who had to sell during those stretches would have locked in losses. Income is small: the yield was 0.96% as of October 27, 2026, paid twice a year. The 0.60% expense ratio is close to similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).