Global X Hydrogen UCITS ETF Acc

Issuer: Global X ETFs

Asset Class: Equity

TER: 50bps

Trading Currency: GBP

Pays Income: False

Listing Date: 09 Feb 2022

Ticker: HYGG

ISIN: IE0002RPS3K2

The investment provides targeted exposure to the burgeoning hydrogen economy, a critical component of the global shift towards decarbonization. This theme encompasses companies involved across the entire value chain, from hydrogen production via electrolysis, through to storage, transportation, and its application in fuel cells for power generation and transportation. As nations and corporations worldwide commit to ambitious net-zero emissions targets, hydrogen is poised to play a pivotal role, particularly in hard-to-abate sectors such as heavy industry, long-haul trucking, shipping, and aviation. The strategy aims to capture the growth of companies that are leading this transition, benefiting from increasing government support, technological advancements, and the falling costs of renewable energy needed for 'green' hydrogen production.

By investing in this thematic portfolio, one gains access to a diversified basket of global companies that are at the forefront of hydrogen technology and infrastructure development. The portfolio includes pure-play hydrogen companies as well as established industrial firms that are strategically pivoting to capitalize on this emerging market. This approach offers a comprehensive way to participate in the potential long-term growth of the hydrogen sector without needing to select individual winners in a rapidly evolving industry. It serves as a strategic allocation to a disruptive technology that has the potential to reshape the energy landscape and create substantial value for years to come.

This investment is most suitable for those with a long-term investment horizon and a higher tolerance for risk, given the nascent and dynamic nature of the hydrogen industry. It can act as a strategic satellite holding within a broader, well-diversified portfolio, allowing investors to align their capital with powerful sustainability and clean energy trends. For those who believe in the long-term viability and necessity of hydrogen as a clean fuel source, this provides a direct and efficient method to gain exposure to the companies expected to drive and benefit from its widespread adoption.