Hydrogen ETF (HGEN) – Global X ETFs Australia


Hydrogen ETF

Reasons to Consider HGEN

High Growth Potential

Forecasts suggest the global hydrogen fuel cell vehicle market could grow more than 75% from 2021 to 2026, approaching USD$31bn in value and highlighting just one of many growth opportunities for the theme.1

Advancing Clean Technologies

Hydrogen-powered fuel cells produce zero direct emissions, meaning broader adoption could result in reduced greenhouse gas emissions and improved air quality.2

Global Tailwinds

The shift to green energy isn't confined to a single sector or region. HGEN invests accordingly, with global exposure across multiple industries.

1 Research and Markets, Jun 2021
2 US Office of Energy Efficiency & Renewable Energy

Product Information As of 8 Dec 2023

Inception Date 6 Oct 2021
Management Costs (% p.a.) 0.69
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Trust
SMSF Eligible Yes

NAV Information As of 8 Dec 2023

NAV/Unit (A$) 5.35550000
Currency (NAV) AUD
Shares Outstanding 7,221,305
AUM (A$) 38,673,871.41

Product Summary

The Global X Hydrogen ETF (HGEN) seeks to invest in companies that stand to benefit from the advancement of the global hydrogen industry. This includes companies involved in hydrogen production; the integration of hydrogen into energy systems; and the development/manufacturing of hydrogen fuel cells, electrolyzers, and other technologies related to the utilization of hydrogen as an energy source.

Product Objective

The Global X Hydrogen ETF (HGEN) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Hydrogen ESG Index.

Trading Details

Ticker HGEN
Bloomberg Code HGEN AU Equity
ISIN AU0000170201
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited

Benchmark Information

Benchmark Solactive Global Hydrogen ESG Index
Provider Solactive AG

Distributions As of 31 Oct 2023

12-Month Yield 0.19%
12-Month Franking Level 0.00%
Distribution Frequency Annually
Distribution History View

Performance Table As of 8 Dec 2023

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 2.60% 2.67% -0.07% 0.07%
3 Months -16.46% -16.38% -0.09% 0.08%
1 Year -26.48% -26.05% -0.43% 0.27%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. -24.91% -24.35% -0.56% 0.35%

Top Holdings As of 11 Dec 2023

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
12.20 BLOOM ENERGY C-A BDD1BB8 13.91 223,497 4,720,023
6.07 NEL ASA B02NR83 7.66 2,196,216 2,347,299
5.62 BALLARD POWER 2120371 3.65 392,490 2,175,038
5.57 PLUG POWER INC 2508386 4.01 354,124 2,155,982
5.55 DOOSAN FUEL CELL BH4G7R8 21,500.00 85,997 2,147,953
4.17 MITSUBISHI CHEMI B0JQTJ0 941.20 162,900 1,610,833
4.14 LINDE PLC BNZHB81 401.27 2,631 1,602,887
3.89 DOOSAN CO LTD 6661111 90,200.00 14,344 1,503,072
3.80 BURCKHARDT COMPR B176416 495.00 1,718 1,467,789
3.69 DONGJIN SEMICHEM 6219297 39,250.00 31,297 1,427,070
3.66 KEPPEL INFRASTRU B1P31B8 0.48 2,632,165 1,416,917
3.64 UMICORE BF44466 24.10 35,740 1,408,225
3.58 JOHNSON MATTHEY BZ4BQC7 16.27 44,668 1,384,093
3.55 CHUNG-HSIN 6194811 126.00 225,000 1,372,641
3.50 HYSTER-YALE B7LG306 50.70 17,577 1,353,001
3.46 AIR PRODS & CHEM 2011602 263.27 3,349 1,338,634
3.03 CHEMOURS CO BZ0CTP8 28.90 26,719 1,172,366
2.71 FUELCELL ENERGY BK6S6J8 1.29 534,506 1,046,858
2.61 KAORI HEAT B02Q5L1 248.00 84,000 1,008,637
2.24 CERES POWER HOLD BG5KQW0 1.80 253,242 867,175
2.22 ITM POWER PLC B0130H4 0.56 809,667 860,443
2.00 SFC ENERGY AG-BR B12DGD8 20.75 22,816 774,031
1.75 ENERGY VAULT HOL BNYF0L2 2.39 186,734 677,589
1.27 HEXAGON PURUS AS BN7FJV2 9.70 363,727 492,280
1.14 POWERCELL SWEDEN BTHH8L3 44.40 68,518 441,684
1.11 MICO LTD 6427722 8,400.00 43,885 428,251
1.02 VINA TECH CO LTD BBSPWY1 44,650.00 7,621 395,309
0.91 GREEN HYDROGEN S BM91MD4 6.50 246,693 351,633
0.83 DAIICHI KIGENSO B03KX18 952.00 32,200 322,063
0.39 EG CORPORATION 6218313 11,380.00 11,331 149,801
Holdings are subject to change.

Sector Breakdown As of 11 Dec 2023

Sector Weight (%)
Industrials 66.6
Materials 26.9
Utilities 3.7
Information Technology 2.1
Other/Cash 0.7

Country Breakdown As of 11 Dec 2023

Country Weight (%)
United States 36.4
South Korea 15.7
Britain 8.0
Norway 7.3
Taiwan 6.2
Canada 5.6
Japan 5.0
Switzerland 3.8
Singapore 3.7
Belgium 3.6
Germany 2.0
Other/Cash 2.7



  • What is the hydrogen economy?

    Sometimes called the “Swiss army knife” of decarbonisation, hydrogen is versatile, and can remove carbon dioxide from a lot of industries – like steelmaking, ammonia production, shipping – that are heavily polluting.

    Hydrogen is not new. But today more than 95% of it comes from fossil fuels like methane and coal. What is new – and potentially exciting – is the growth of green hydrogen, which is created by using clean energy to split water into hydrogen and oxygen. Green hydrogen promises a quiet energy revolution, as it can replace hydrogen generated from fossil fuels. Furthermore, it can then be extended into other areas of the economy where solar power and batteries are unworkable. (For a list of use cases for green hydrogen, please see our Investment Case document).

    Turning hydrogen green, and then using it to decarbonise industry, is sometimes called the “hydrogen economy”.
  • How are the companies in the index identified?

    Hydrogen businesses are identified by Solactive, which runs the index, using a two-step process. The process is used both to identify hydrogen companies, but also to distinguish between pure-play and non-pure play companies.

    The first step is natural language processing (NLP)—which is a form of keyword search. The second step is using FactSet’s sector classification system, called RBICS.

    In the first step, Solactive uses NLP to trawl through companies public filing documents, websites, social media and other literature to identify hydrogen businesses. In the second step, hydrogen companies identified by the NLP are next examined under the FactSet Revere Business Industry Classification System (RBICS). Those in RBICS sub industries: Fuel Cell Equipment, Technology Providers, Thermal and Chemical Processing Machinery Makers are identified as “pure-plays”. Those outside these sectors are non-pure plays.
  • How are companies in HGEN weighted?

    HGEN uses a capped and tiered index methodology. The tiering involves splitting companies into pure-play and non-pure play companies. Pure play companies are allowed to take up to 10% of the fund each, while non-pure plays are allowed only 4%.

    The capping involves, at each semi-annual rebalance, selling companies whose weights have expanded over the 10% and 4% thresholds described above.

    This weighting methodology is to ensure that pure play businesses have an expanded influence on the performance of the fund. While the capping is used to ensure that no single company becomes too influential.
  • What does the ESG screen do?

    As the vast majority of hydrogen today is produced from fossil fuels, the index uses an ESG screen that severely restricts the ability of fossil fuel companies to enter the index.

    The ESG screen removes any company making over 5% of its gross revenue from oil or gas production. And removes any company that makes over 10% of its revenue from producing coal. Similarly strict revenue thresholds greatly limit the ability of weapons companies to enter the index. While tobacco, and gambling companies are outrightly removed.

    The ESG screen also excludes companies with verified ongoing failures to respect established international norms, as codified under the UN Global Compact and the OECD Guidelines for Multinational Enterprises.
  • How is the ESG screen built and what are its limitations?

    The index provider, Frankfurt-based Solactive AG, uses ESG data sourced from Minerva Analytics, an ESG research and data company based in the UK. Minerva conducts proprietary research on companies’ sustainability and governance activities to build data sets. Minerva’s datasets are used by Solactive to determine the final constituents in the index.

    The strength of this data-driven approach to ESG is that it can be incorporated into an index, allowing for potentially lower-cost passive management. Limitations of this approach include a lack of direct stewardship and potential for data errors.
  • How can you use HGEN in a portfolio?

    1. To express long-term strategic or short-term tactical views on decarbonisation and the energy transition.

    2. To diversify a portfolio away from fossil fuel companies, which are present in some investors portfolios.

    3. To access an earlier stage and potentially higher growth clean energy investment opportunity.
  • Does HGEN overlap with other Global X funds?

    We design our ETFs with a view of minimising the amount of overlap between each. In this way, investors who buy more than one of our funds avoid buying the same stocks repeatedly.

    The precise amount of overlap between each fund can differ as the stocks moving in and out of each ETF change at index rebalance/reconstitution. Whatever overlap exists is usually small. For investors wanting to know the exact quantify of overlap between specific ETFs, please feel free to contact us.

Investments may go up or down in value and you may lose some or all of the amount invested. Past performance is not necessarily a guide to future performance. Any advice provided by Global X Management (AUS) Limited (“Global X”) is general advice and does not take into account your personal objectives, financial situation or needs. You should consult an independent investment adviser prior to making an investment in order to determine its suitability to your circumstances. This material may contain links to third party websites. Global X does not control and is not responsible for the information contained within third party websites. None of these links imply Global X’s support, endorsement or recommendation of any other company, product or service.

Global X Management (AUS) Limited ACN 150 433 828 AFSL No 466778

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