Hydrogen Stocks
ISIN: IE00BMDH1538
- Hydrogen stocks give exposure to a new technology
- These 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, KID and prospectus.
Hydrogen Stocks Have Momentum
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
The performance of some has been volatile in the short-term: they have risen quickly at times when ‘green’ stocks have been in favor, 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
Because of the relatively newness of hydrogen technology, many regard hydrogen stocks as having a relatively high risk.
Diversified Investing
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 these 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.
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: 6 out of 7
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Main Risk Factors of Hydrogen Stocks
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.
The fund may invest a high percentage of its assets in a smaller amount of issuers or may invest a greater proportion of its assets in a single issuer. Consequently, gains and losses on a single investment may have a larger influence on the Fund's Net Asset Value and may increase the volatility of the Fund compared to more diversified funds.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. In comparison with larger companies, smaller companies, may have a shorter history of operations, fewer financial resources, less strength to compete, a less diversified product line and a smaller trading market for their securities. It may also be more susceptive to market pressure. This is one of the risk factors of hydrogen stocks.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
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.*
