“ETFS Hydrogen ETF (ASX Code: HGEN) offers investors exposure to the world’s leading hydrogen companies, with a focus on pure-plays. Sometimes described as the “Swiss army knife” of decarbonisation, hydrogen contains three times more energy on a weight-for-weight basis than petrol while producing no carbon dioxide emissions. Hydrogen can be used to replace fossil fuels like coal in areas that have proved hard to “green up” in the past. “
HGEN aims to provide investors with a return, before fees and expenses, that tracks the performance of the Solactive Global Hydrogen ESG Index. The index holds 30 companies from developed markets, Taiwan and Korea with a focus on pure-play hydrogen businesses. These include hydrogen fuel-cell makers; companies developing hydrogen-based infrastructure like refuelling stations; and companies creating hydrogen or making storage facilities.
HGEN uses a full-replication strategy to track the index, meaning that it holds shares of every company in its index. Pure-play hydrogen companies, which are identified using natural language processing, receive more weight in the fund and have their weights capped at 10%. Non-pure play hydrogen companies receive less weight, and have their weights capped at 4% each.
Listed with 1,00,000 shares at 10.00. Management costs 0.69%. Distributions – Annually. Currency hedged – No
Benchmark: Solactive Global Hydrogen ESG Index.
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