Invesco Hydrogen Economy UCITS ETF Acc

Issuer: Invesco

Asset Class: Equity

TER: 60bps

Trading Currency: USD

Pays Income: False

Listing Date: 13 Sep 2022

Ticker: HYDE

ISIN: IE00053WDH64

This fund offers targeted exposure to the burgeoning hydrogen economy, a critical pillar in the global transition towards a low-carbon future. As governments and corporations worldwide commit to ambitious net-zero targets, hydrogen is emerging as a versatile and clean energy carrier with applications across transportation, industrial processes, and power generation. The investment thesis is rooted in the significant public and private capital being deployed to scale up hydrogen production, particularly green hydrogen derived from renewable sources, and build out the necessary infrastructure for its storage and distribution. This creates a long-term structural growth opportunity for companies operating across the entire hydrogen value chain.

The investment strategy is designed to capture the growth of this nascent industry by tracking an index of global companies involved in advancing the hydrogen ecosystem. The portfolio includes firms focused on the production of green hydrogen through electrolysis, manufacturers of fuel cells that convert hydrogen into electricity, developers of hydrogen storage and transportation solutions, and companies integrating hydrogen into their products and services. This approach provides a diversified yet pure-play investment in the key enablers and beneficiaries of the shift to hydrogen energy. By investing in a basket of these pioneering companies, investors can gain access to a theme that is at the forefront of decarbonisation efforts.

This fund is suitable for investors seeking to align their portfolios with the clean energy transition and tap into a high-growth, innovative theme. However, as a focused thematic product, it carries a higher risk profile and may experience greater volatility than broad market equity funds. The success of the underlying companies is contingent on continued technological advancements, supportive regulatory frameworks, and the economic viability of hydrogen compared to other energy sources. It represents a satellite holding for those with a long-term conviction in the transformative potential of the hydrogen economy.