Top UCITS Alternatives to ICLN

The iShares Global Clean Energy ETF (ICLN) tracks the S&P Global Clean Energy Transition Index (formerly the S&P Global Clean Energy Index), providing targeted exposure to companies leading the production of solar, wind, and other renewable energy sources. 

As the largest and most liquid fund in the sector, it offers diversified access to both developed and emerging markets, allowing investors to capitalize on global decarbonization policies. Notably, the fund’s underlying index was expanded in 2021 to broaden its holdings, reducing concentration risk while maintaining pure-play leverage to the energy transition.

However, for long-term Indian investors, ICLN carries a critical structural risk: the US estate tax. If you hold US-domiciled assets like ICLN and your holdings exceed $60,000, your estate faces US estate tax at progressive rates of up to 40% on your death. On a $500,000 holding, that works out to roughly 29% of the portfolio.

This blog gives you all the information you need about the top UCITS alternatives. The first option below tracks the same index as ICLN, while the others track different clean energy indices, including one with broader exposure to electric vehicles and battery technology, all without the estate tax risk.

Table of contents

1. Why Indians are looking for UCITS alternatives to ICLN
2. Popular UCITS alternatives for ICLN
3. Invest in UCITS ETFs with Paasa

Why Indians are looking for UCITS alternatives to ICLN

Indian investors are shifting to UCITS alternatives because they solve the tax risks and inefficiencies of US ETFs like ICLN while providing very similar exposure.

• Estate Tax Protection: UCITS funds are typically domiciled in Ireland. They are not considered "US-situs" assets, meaning they are 100% exempt from US Estate Tax.
• Tax Deferral (Accumulation): Unlike ICLN, which forces taxable cash dividends on you, many UCITS funds offer "Accumulating" classes that reinvest dividends automatically. This defers your Indian tax liability until you sell the fund, and converts what would have been slab-rate dividend income into capital gains.

To learn more about UCITS ETFs and why Indian investors are choosing them, read our guide on UCITS ETFs.

Popular UCITS alternatives for ICLN

Here are the top three UCITS funds that serve as the best proxies for global clean energy exposure.

1. iShares Global Clean Energy Transition UCITS ETF

Source

This is the European version of ICLN, managed by the same provider, BlackRock (iShares). It tracks the same S&P Global Clean Energy Transition Index, giving you the same exposure to large global wind, solar and renewable utility companies, which makes it the default choice if you want the US fund's portfolio in a UCITS wrapper.

The long-standing INRG line is distributing. For accumulation, use the separate USD (Acc) share class, which trades on the LSE as INRA.

• Ticker: INRA (LSE, GBP), accumulating; INRG (LSE, GBP) is the distributing line
• Total Expense Ratio (TER): 0.65%
• Structure: Accumulating (INRA) or Distributing (INRG)
• Top Holdings: First Solar, Enphase Energy, Vestas Wind Systems, Iberdrola SA, Consolidated Edison.

2. L&G Clean Energy UCITS ETF

Source

If you want a different clean energy index from ICLN's, RENW tracks the Solactive Clean Energy Index, which covers companies worldwide across the clean energy sector. At 0.49% it is noticeably cheaper to hold than the BlackRock fund.

• Ticker: RENW (LSE, USD)
• Total Expense Ratio (TER): 0.49%
• Structure: Accumulating (Reinvests dividends)
• Top Holdings: NKT A/S, Hubbell, Eaton Corp, First Solar, Fluence Energy.

3. First Trust Nasdaq Clean Edge Green Energy UCITS ETF

Source

If you want a clean energy fund that behaves more like a technology ETF, this First Trust fund is a strong alternative to ICLN. ICLN leans on renewable utilities and turbine makers, which are sensitive to interest rates, while this fund also holds electric vehicles, battery technology, advanced materials, energy storage and semiconductors.

That makes it a broader, more US-leaning growth play on the energy transition, with exposure to companies like Tesla and ON Semiconductor.

• Ticker: QCLU (LSE, USD) / QCLN (LSE, GBX)
• Total Expense Ratio (TER): 0.60%
• Structure: Accumulating (Reinvests dividends)
• Top Holdings: First Solar, Tesla, Enphase Energy, ON Semiconductor, Albemarle Corp.

More UCITS alternatives: UCITS alternatives to PHO and UCITS alternatives to XLE.

Related: What are UCITS ETFs? and Should you switch from US ETFs to UCITS?

Invest in UCITS ETFs with Paasa

Paasa is a global investing platform designed for Indian residents and NRIs. We provide direct access to 11 markets: the US, Canada, the UK, Germany, France, Switzerland, the Netherlands, South Korea, Japan, Hong Kong and Singapore.

This means you are not restricted to just US ETFs like ICLN; you can also buy tax-efficient UCITS equivalents using Paasa.

The compliance advantage

Paasa makes global investing easy and also removes the compliance friction with a specialized layer built for Indian residents and NRIs:

• Schedule FA reporting: Exact reports you need for your Indian tax returns, eliminating the need for manual calculations.
• FEMA & LRS guidance: Guidance on FEMA regulations and LRS limits to ensure compliance.

Whether you are buying direct US stocks or investing in UCITS ETFs listed on European exchanges, Paasa provides global access with India-specific compliance and tax support.