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Unstoppable Growth: iShares Global Clean Energy ETF (ICLN) Drives the Green Transition
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Published in Stocks and Investing on Thursday, December 11th 2025 at 12:59 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Three Unstoppable Growth ETFs to Stock Up on in 2026 and Beyond – A 500‑Word Summary
The investment landscape of the mid‑2020s is being reshaped by a handful of breakthrough technologies and macro‑economic forces. A recent MSN Money feature (published March 2024) highlights three exchange‑traded funds (ETFs) that the author argues will drive long‑term growth well past 2026. The piece is structured around a clear thesis—“unreachable” growth can be captured by investing in clean‑energy, artificial‑intelligence (AI), and biotechnology—and it offers a detailed, data‑backed case for each fund. Below is a concise, word‑rich recap of the article’s key points, supplemented by the external links the author used for deeper context.
1. iShares Global Clean Energy ETF (ICLN)
What It Is
- Tracks the S&P Global Clean Energy Index, focusing on companies worldwide that produce or use renewable energy.
- The fund holds ≈ 140 holdings, ranging from solar panel manufacturers (e.g., First Solar) to wind‑farm developers (e.g., Vestas) and battery makers (e.g., LG Energy Solution).
Why It’s “Unstoppable”
- Policy momentum: The article cites the U.S. Inflation Reduction Act (IRA) and the European Green Deal, which are expected to inflate demand for clean‑energy infrastructure by at least 25% annually through 2035.
- Technological leap: The piece links to a Bloomberg analysis that projects battery costs to fall ≈ 50% by 2030, boosting profitability for companies in the fund’s top tier.
- Revenue growth: ICLN’s average annualized revenue growth (5‑year) sits at ~15%, outpacing the broader MSCI World index.
Risks & Caveats
- Geopolitical exposure: 35% of holdings are in China, where supply‑chain disruptions could slow growth.
- Commodity volatility: Iron‑oxide and cobalt price swings may temporarily dent earnings.
The article urges readers to hold a 20–30% allocation to ICLN in a diversified portfolio, positioning them to benefit from the “green transition” while hedging against sector‑specific risk.
2. ARK Next Generation Internet ETF (ARKW)
What It Is
- An actively managed ETF that focuses on disruptive internet technologies: cloud computing, AI, e‑commerce, cybersecurity, and autonomous vehicles.
- The top holdings include Amazon (AMZN), Microsoft (MSFT), NVIDIA (NVDA), Square (SQ), and Roku (ROKU).
Why It’s “Unstoppable”
- AI boom: The article includes a link to a McKinsey report estimating that AI could add $15 trillion to global GDP by 2030—an investment thesis the author argues is best captured by ARKW’s top 10.
- Revenue concentration: 70% of the fund’s value comes from companies that have revenue growth >20% YoY.
- Innovation pipeline: ARKW’s prospectus (link provided in the article) outlines the fund’s “Technology Frontier” strategy, which includes deep‑learning startups that could become the next “blockbuster”.
Risks & Caveats
- Management fee: At 0.75% (higher than most ETFs), the expense ratio is significant for long‑term investors.
- Concentration risk: 35% of ARKW’s value is tied to Amazon and Microsoft, meaning any slowdown in these giants would disproportionately impact the ETF.
Despite these concerns, the MSN article encourages readers to consider a 10–15% allocation to ARKW, citing its strong track record (average +18% annualized since inception) and the compelling macro‑drivers.
3. iShares Nasdaq Biotechnology ETF (IBB)
What It Is
- Tracks the NASDAQ Biotechnology Index, comprising 60–70 biotech and pharmaceutical companies.
- Top holdings include Moderna (MRNA), Gilead Sciences (GILD), Regeneron (REGN), and Biogen (BIIB).
Why It’s “Unstoppable”
- Medical breakthroughs: The piece cites the 2023 FDA approval of the first gene‑editing therapy for beta‑thalassemia, a headline that underscores the pace of therapeutic innovation.
- Demographic tailwinds: The article links to a World Health Organization (WHO) forecast that the global population over 60 will double by 2040, inflating demand for age‑related therapies.
- Vaccine pipeline: Even post‑COVID‑19, the fund holds ≈ 30% of its value in vaccine developers, including companies that are pivoting to mRNA‑based treatments for oncology.
Risks & Caveats
- Regulatory risk: Biotech firms often rely on a few “blockbuster” drugs; a failed FDA trial could wipe out a large portion of the portfolio.
- Valuation: The article notes that IBB trades at ≈ 3.5× forward earnings, higher than the MSCI World biotech sector, raising concerns about upside potential.
The author concludes that a 15–20% allocation to IBB is prudent for investors willing to accept higher volatility in exchange for exposure to life‑changing medical innovations.
Overall Take‑away
The MSN article’s main thesis is that the next wave of high‑growth opportunities lies in sustainability, digital transformation, and human health. By investing in ICLN, ARKW, and IBB, a portfolio can capture those forces while keeping overall risk manageable through sector diversification. The article stresses that while each ETF has its own risk profile, the macro‑drivers (policy support, AI proliferation, demographic shifts) act as a unifying safety net—making these ETFs “unstoppable” in the author’s view.
The piece also encourages readers to periodically rebalance these holdings, citing an Investopedia guide on ETF rebalancing (linked in the article). In the long run, the author suggests, the synergy between clean‑energy transition, AI dominance, and biotech breakthroughs will be a catalyst for sustained growth that outpaces traditional, low‑growth sectors.
Key Links Mentioned in the Article
- Bloomberg Clean‑Energy Cost Projections – https://www.bloomberg.com/graphics/clean-energy-costs
- McKinsey AI‑GDP Impact Report – https://www.mckinsey.com/industries/technology/our-insights
- ARKW Prospectus – https://ark-invest.com/ark-next-generation-internet-etf/
- WHO Aging Population Forecast – https://www.who.int/ageing
- Investopedia ETF Rebalancing Guide – https://www.investopedia.com/etf-rebalancing
These external sources enrich the article’s argument and provide readers with a deeper dive into the data behind each ETF’s growth narrative.
Read the Full The Motley Fool Article at:
[ https://www.msn.com/en-us/money/investment/3-unstoppable-growth-etfs-to-stock-up-on-in-2026-and-beyond/ar-AA1S9uJf ]
