5 Best Energy ETFs: Top Oil, Gas and Renewable Energy Funds

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1. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID)

5-Year Share Price Performance as of March 14: 153.65%

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID) aims to mirror the performance of the Nasdaq Clean Edge Smart Grid Infrastructure Index. This index tracks common stocks in the grid and electric energy infrastructure sector, including companies engaged in electric grid, meters, networks, energy storage, and enabling software for smart grid infrastructure. Established on November 16, 2009, First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID) features an expense ratio of 0.57% and holds a portfolio of 101 stocks. It ranks 1st on our list of the best energy ETFs. 

Eaton Corporation plc (NYSE:ETN), an Ireland-based power management company, is the largest holding of First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID). On February 29, Eaton Corporation plc (NYSE:ETN) declared a $0.94 per share quarterly dividend, a 9.3% increase from its prior dividend of $0.86. The dividend is payable on March 29, to shareholders on record as of March 11. 

According to Insider Monkey’s fourth quarter database, 63 hedge funds were long Eaton Corporation plc (NYSE:ETN), compared to 55 funds in the last quarter. Philippe Laffont’s Coatue Management is the largest stakeholder of the company, with nearly 4 million shares worth $960 million. 

ClearBridge Sustainability Leaders Strategy made the following comment about Eaton Corporation plc (NYSE:ETN) in its Q3 2023 investor letter:

“While renewable stocks have come under pressure of late, energy efficiency and decarbonization remain strong drivers for our industrials holdings, where Eaton Corporation plc (NYSE:ETN) and Trane Technologies (TT) were strong contributors. Eaton, whose electrical equipment enables the electrification of the power grid and electrical vehicle charging infrastructure, is benefiting from tax incentives supporting clean energy, growth in reshoring and expanding manufacturing in North America and the need for grid resiliency amid broad demand for electrification.”

Follow Eaton Corp Plc (NYSE:ETN)

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