ETF Securities launches hydrogen fund

ETF Securities hydrogen

ETF Securities has expanded its energy investment options with the launch of a hydrogen ETF available on the Australian Securities Exchange.

ETF Securities has launched an exchange-traded fund (ETF) that will expose investors to opportunities in the hydrogen economy as clean energy sources become an area of interest in business and science.

The fund, ETFS Hydrogen ETF (code: HGEN), is available on the Australian Securities Exchange and invests in a concentrated portfolio of 30 stocks from developed markets exposed to hydrogen.

The company said it has targeted companies that produce hydrogen fuel cells, generate hydrogen or build electrolysers and hydrogen refuelling stations and other infrastructure including storage.

ETF Securities head of production Evan Metcalf added the fund will remove oil, gas and coal companies and will apply an environmental, social and governance filter to exclude companies involved in weapons, gambling, tobacco and fossil fuels.

ETF Securities head of distribution Kanish Chugh said the new addition will provide investors with further access to a social and economic megatrend.

“The hydrogen economy is a greenfield investment opportunity, still in its early development stage. However, its potential applications are limitless, from making fertiliser to powering the world’s transport systems,” Chugh said.

“Hydrogen may be like the internet in the 1990s or semiconductors in the 1970s. In these instances, disruptive technologies reached tipping points and saw exponential uptake. Their uptake was driven by megatrends, which are one-off structural shifts in the economy and society.”

Internationally, the adoption of clean energy and its technological development have been encouraged by government institutions, with a significant number of hydrogen power projects beginning, according to ETF Securities.

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