What Is The HGEN Hydrogen ETF?

What Is The ETFs Hydrogen ETF? - Carbon Herald

ETFs Hydrogen ETF (ASX: HGEN) is listed on the Australian Securities Exchange and offers investors exposure to the world’s leading hydrogen companies, with a focus on pure-plays. It monitors the performance of the Solactive Global Hydrogen ESG Index that holds 30 hydrogen companies from developed markets, Taiwan and Korea. 

The companies included are hydrogen fuel-cell makers, developing hydrogen-based infrastructure like refueling stations, producing hydrogen, or making storage facilities. The annual management fee is 0.69%.

The ETF uses a full-replication strategy to track the Solactive Global Hydrogen ESG Index – it holds shares of every company in its index. Pure-play hydrogen companies receive more weight in the fund and have their weights capped at 10% while non-pure-play hydrogen companies receive less weight, and have it capped at 4% each.

The shares in the ETFs Hydrogen ETF are allocated in five main countries with the biggest weightings at the end of November 2021: the US (32.6%), the UK (23.9%), South Korea (15.7%), Canada (9.3%) and Norway (6.8%).

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The companies with the 10 biggest positions are Plug Power, Bloom Energy, Ballard Power, ITM Power, Doosan Fuel Cell, Ceres Power, Fuelcell Energy, Linde, Air Products & Chemicals, and Doosan Corp.

The hydrogen economy aims to provide the most viable and economic solution for decarbonization so the sector is attracting investments. As most of the world is not targeting net zero emissions by 2050, innovative fuel sources like hydrogen are needed to be deployed on a large scale to achieve the ambitious zero emissions goals.

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