Hydrogen Stocks

ISIN: IE00BMDH1538

  • Hydrogen stocks give exposure to a new technology
  • Hydrogen stocks can also benefit from the shift to renewable energy
  • They can be higher risk, so it is advisable to diversify in a broad basket

Risk: You may lose money up to the total loss of your investment due to Emerging Markets Risk and Risk of investing in smaller companies as described in the Main Risk Factors, KIID and prospectus.

Hydrogen Stocks Have Momentum

A huge expansion is expected of the hydrogen industry, leading to considerable expansion of hydrogen stocks. Decarbonising energy and other industries globally using hydrogen will require investment of almost $15 trillion between now and 2050, according to a recent Energy Transitions Commission report.1
So-called green hydrogen2, made from water by using renewable energy to power electrolysers, is currently too expensive for widespread use, but as demand grows so the cost should fall.
Around 85% of the required investment would be in renewable energy generation, with 15% in electrolysers, hydrogen production facilities and transport and storage infrastructure.3



1 Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an Electrified Economy. April 2021.
https://energy-transitions.org/wp-content/uploads/2021/04/ETC-Global-Hydrogen-Report.pdf

3 Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an Electrified Economy. April 2021.
https://energy-transitions.org/wp-content/uploads/2021/04/ETC-Global-Hydrogen-Report.pdf

Types of Hydrogen Stocks

The hydrogen economy comprises a range of types of companies that VanEck classifies as: pure-play hydrogen stocks, hydrogen gas producers, fuel cell producers, hydrogen storage and electrolyser producers.

Volatility of Hydrogen Stocks

The performance of some hydrogen stocks has been volatile in the short-term: they have risen quickly at times when ‘green’ stocks have been in favour, only to correct when the prospect of rising global interest rates has dampened enthusiasm for so-called long duration stocks.

Yet over the longer term, many hydrogen stocks should be a play on the growth of the companies they represent.

Risks of Hydrogen Stocks

Because of the relatively newness of hydrogen technology, many regard hydrogen stocks as having a relatively high risk.

Diversified Investing in Hydrogen Stocks

You can reduce the investment risk by buying a hydrogen ETF rather than buying a handful of individual hydrogen stocks. A hydrogen ETF gives exposure to a broad set of hydrogen stocks. It is rebalanced regularly, to avoid over exposure to a hydrogen stock that has become over-valued, or under exposure to a hydrogen stock that has become under-valued. The VanEck Hydrogen ETF offers a low-cost, diversified way to back the expansion of the hydrogen economy.

Hydrogen ETF

VanEck Hydrogen Economy UCITS ETF

ISIN: IE00BMDH1538


  • Fast-growing industry
  • Governments around the world are turning towards supporting a clean energy future
  • Tracks highly liquid hydrogen companies, based on market capitalization and trading volume
  • Disrupting the traditional energy industry

Risk indication: 7 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

Main Risk Factors of the Hydrogen ETF

Icon

This occurs when it is difficult to buy or sell a specific financial instrument. If the relevant market is illiquid, it may be impossible to make a transaction or liquidate a position at an advantageous or moderate price, or at all.

For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.

Discover more ETFs

More ETFs

Why Invest in VanEck ETFs?

  • Since we were founded in 1955 we have constantly been at the forefront of innovation, giving you access to new opportunities like gold funds, emerging market funds and ETFs.
  • We are privately-held, allowing us to focus on our clients’ long-term interests.
  • Our ETFs are transparent: they acquire the underlying securities (no synthetic replication). Securities are not lent out.*
* This only holds for VanEck’s European ETFs.
click-to-view-youtube-video
Please contact us for more information: