Hydrogen ETF

Hydrogen shares for a clean energy source and carbon-free future.

Hydrogen: The Energy Form of the Future?

As the global climate warms, governments around the world are committing to a carbon-free future. Hydrogen is seen as part of the solution – as a clean energy source of the future. You can invest in hydrogen stocks and profit from this trend with our hydrogen ETF, the VanEck Vectors Hydrogen Economy UCITS ETF (IE00BMDH1538).

Hydrogen can be produced from water and, if produced with renewable energy, does not contribute to atmospheric CO2. In addition, its high energy density makes it more suitable than electric batteries for powering particularly heavy objects such as aircraft and ships.

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Source: VanEck

Hydrogen is increasingly being hailed as the energy source of the future. The European Commission has placed hydrogen at the heart of its plans for the energy transition. By 2030, i.e. in less than ten years, the Commission wants to have at least 40 GW of installed electrolyser capacity for renewable energies.1

Looking ahead to 2050 – the date by which many major economies aim to be carbon neutral – leading consultancies predict that hydrogen will play an important role in a wide range of applications. These include: Buses, ships, current buffers, industrial heating, building heating, steel production2etc.

As wind turbines and solar cells become more widespread, a low-cost renewable energy source will be available to power the electrolysers used to produce hydrogen.

Please note that hydrogen as a form of energy is still fully in the development stage. Many hurdles of a technical and infrastructure nature still need to be overcome. There is no guarantee that the projected growth will occur.

1Source: 2x40 GW Green Hydrogen Initiative.

2Source: Source: McKinsey: Hydrogen, the next wave for electric vehicles? Date: November 2017.

Applications Across Industries

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

Invest in a Hydrogen ETF

Gain access to the innovative hydrogen equity companies that are making a critical contribution to building the hydrogen economy through the VanEck Vectors Hydrogen Economy UCITS ETF. This hydrogen ETF invests globally in hydrogen 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 key players in the hydrogen ecosystem, including gas and fuel cell manufacturers. The hydrogen index on which the ETF is based is reviewed quarterly so that you can benefit from new hydrogen stocks entering the dynamic hydrogen economy.

The ETF covers the following parts of the ecosystem:

At least 20 countries representing 70% of global GDP plan to use hydrogen for decarbonisation.3 Pure-play hydrogen stocks include 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

  • Pioneers of the hydrogen economy
  • Diversifies your risk across companies and sectors
  • Global investment universe
  • 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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As governments bet that hydrogen is part of the solution to the problem of climate change, so it’s likely to become a far bigger part of the global energy mix. 

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