Hydrogen ETF

The clean energy source for a zero-carbon future.

The Energy of the Future?

As the global climate warms, governments worldwide are committing to a zero-carbon future. Hydrogen is seen as part of the solution – a clean energy source of the future. You benefit from this trend by investing in our Hydrogen ETF, the VanEck Vectors Hydrogen Economy UCITS ETF (IE00BMDH1538), while also benefitting the environment.

Hydrogen can be produced from water and, providing it’s made using renewable energy, does not add to atmospheric CO2. Further, its high energy density makes it more suited than electric batteries for powering anything that is especially heavy, such as aircraft and ships.

Hydrogen Production

Source: VanEck.

Hydrogen is increasingly heralded as tomorrow’s energy source. The European Commission has placed the gas at the centre of its energy transition plans. By 2030, less than 10 years from now, the Commission aims to have in place at least 40 GW of renewable energy electrolysers.1

Looking forward to 2050 – the date when many major economies to be carbon neutral – leading consulting firms foresee hydrogen playing a major role in many sectors. These include: buses, ships, power buffers, industrial heating, heating for buildings, steel production2 etc.

As wind turbines and solar cells become increasingly abundant, they will provide a low-cost renewable energy source for powering the electrolysers making hydrogen.

Do note that hydrogen still is in full development. Many technical and infrastructural hurdles need to be overcome. There is no guarantee that forecasted growth will materialize.

1Source: 2x40 GW Green Hydrogen Initiative.
2Source: McKinsey: Hydrogen, the next wave for electric vehicles? As of November 2017.

Applications Across Industries

There are many innovative hydrogen initiatives already live or in development.

Invest in a Hydrogen ETF

Access the innovative Hydrogen companies building the hydrogen economy through the VanEck Vectors Hydrogen Economy UCITS ETF. This Hydrogen ETF invests worldwide in stocks that derive at least 50% (25% for current components) of their revenues from hydrogen projects, or have the potential to do so. It also invests in essential contributors to the hydrogen ecosystem, including gas and fuel cell producers. The Hydrogen Stock index behind the ETF is reviewed every quarter, giving you exposure to new stocks entering the dynamic hydrogen economy.

The ETF encompasses these parts of the ecosystem:

At least 20 countries, collectively representing around 70% of global GDP, are proposing hydrogen strategies as part of their decarbonisation plans.3 As hydrogen demand grows, so pure play hydrogen stocks deriving at least 50% of their revenues from hydrogen-related projects should benefit. These include companies like: Nikola, Plug Power, Ballard Power System, Nel, Powercell Sweden, ITM Power, AFC Energy.

3Hydrogen: Rising fast in the global energy mix. Edison. As of December 2020.

Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.

VanEck Vectors Hydrogen Economy UCITS ETF

The ETF invests in hydrogen stocks of the global hydrogen segment.

ISIN: IE00BMDH1538

  • Global investment universe
  • Pure-play hydrogen stocks
  • Essential contributors to hydrogen ecosystem
  • Low annual costs (0.55% all-in)

Risk indication: 7 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

Main Risk Factors

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Exists when a particular financial instrument is difficult to purchase or sell. If the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous or reasonable 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.

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