First Trust NASDAQ Clean Edge Green Energy Index Fund

First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) is an index fund that tracks the Nasdaq Clean Edge Green Energy Index, a basket of about 50 mostly US clean-energy companies such as Bloom Energy, Tesla and First Solar. Its 10 largest holdings made up 59% of assets as of June 30, 2026, its price swings have been extreme, and its 0.59% expense ratio is above the 0.54% average for similar funds.

• Over the year to Oct 27, 2026, QCLN returned -2.0%, 3rd of 9 among similar funds.
• Its 5-year annualized return was -8.7% and its 10-year +12.6%.
• In the 2020 COVID crash it fell 45% and regained its old high 3.6 months after the low.
• Its worst full calendar year was 2008 (-65.8%); its best was 2020 (+183.9%).
• The deepest fall in its price history was 76.2% (Dec 31, 2007 to Nov 20, 2008), recovered by Feb 19, 2020.

As of Jun 30, 2026, the fund held 53 securities; the ten largest made up 58.65% of assets.

• Over the three months to Jun 30, 2026, investors added a net $119.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +26.09%, +13.12%, -7.58%.

QCLN normally puts at least 90% of its net assets in the stocks of its index and tries to match the index's performance before fees. Nasdaq, Inc. and Clean Edge, Inc. build the index. To qualify, a company must make, develop, distribute or install clean-energy technology in one of four areas. These are advanced materials such as lithium and silicon, energy intelligence such as smart meters and LEDs, energy storage such as batteries, electric vehicles and fuel cells, and renewable power such as solar and wind. In general, at least 50% of its revenue must come from clean-energy and low-carbon work. It must also trade on a US exchange and pass size and trading-volume tests.

Stocks are weighted by market value, meaning bigger companies get more weight, with caps. No stock can top 8%, and stocks outside the five largest are capped at 4%. As a result, a handful of names dominate. As of June 30, 2026, Bloom Energy was 9.2% of assets, Tesla 8.4%, Monolithic Power Systems 7.7% and ON Semiconductor 6.8%. Weights can drift between reviews. The index is rebalanced every quarter and its membership is reviewed twice a year. Portfolio turnover was 23%.

The prospectus says the fund invests heavily in industrial and technology companies. It also says the fund may own some Chinese companies through variable interest entities (VIEs). These are offshore shell companies tied to a Chinese business by contracts, not by direct ownership, and that adds legal risk.

• QCLN charges 0.59% a year, versus an average of 0.54% for the similar funds below (6th of 9, cheapest first).
• Of that, 0.4% is the management fee; the rest covers other fund expenses.

QCLN is a concentrated bet on one theme that once lost more than three-quarters of its value, so it can only play a small, higher-risk role.

QCLN can add exposure to clean-energy growth, but its history shows how rough that ride can be. It lost 76.2% from December 31, 2007, to November 20, 2008, and did not get back to that peak until February 2020, about 135 months later. Its worst calendar year was 2008, down 65.8%. It fell 45% in the 2020 COVID crash and recovered in under four months. It then dropped 34.2% in early 2022 and had not regained that peak as of October 27, 2026. Someone forced to sell shares in a bad year could lock in deep losses. Income is minimal: the trailing yield was 0.11% as of October 27, 2026, paid twice a year. The 0.59% expense ratio is above the 0.54% peer average. Past results don't predict future returns, and a retirement plan should look at the whole portfolio, not one fund.

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