L&G Hydrogen Economy UCITS ETF

Issuer: L&G ETFs

Asset Class: Equity

TER: 49bps

Trading Currency: USD

Pays Income: False

Listing Date: 10 Feb 2021

Ticker: HTWO

ISIN: IE00BMYDM794

This fund offers a focused investment into the burgeoning hydrogen economy, a critical pillar in the global transition towards a low-carbon future. As nations and corporations worldwide intensify their efforts to achieve net-zero emissions, hydrogen is emerging as a versatile and powerful clean energy carrier. Its potential applications span across sectors that are traditionally difficult to decarbonise, including heavy industry, long-haul transport, and power generation. By investing in companies integral to this shift, the fund aims to capture the growth driven by this fundamental change in the world's energy landscape, providing exposure to a long-term, structural trend.

The growth of the hydrogen ecosystem is propelled by significant tailwinds, including supportive government policies, ambitious climate targets, and substantial private sector investment. Advances in technology and the decreasing cost of renewable energy are making the production of 'green' hydrogen increasingly viable, unlocking its potential on a commercial scale. This fund provides exposure across the entire hydrogen value chain. This includes companies involved in hydrogen production, manufacturers of essential technologies like electrolysers and fuel cells, and businesses developing the necessary infrastructure for storage and distribution. This comprehensive approach allows for participation in the broad development of the industry.

By offering a diversified basket of global companies, this investment vehicle allows individuals to gain exposure to the hydrogen theme without the concentrated risk of single-stock selection. It targets a portfolio of firms that are either pure-play hydrogen specialists or established industrial players making significant inroads into this new market. This strategy provides a way to invest in the pioneers and enablers of an industry that is poised to play a transformative role in the clean energy transition, presenting a compelling opportunity for growth-oriented investors with a long-term horizon.