Hydrogen ETF (HGEN) – Global X ETFs Australia

HGEN


Hydrogen ETF

Reasons to Consider HGEN

High Growth Potential

The global demand for hydrogen is expected to nearly double between 2021 and 2030.1

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 (Statista, 2023) https://www.statista.com/statistics/1121206/global-hydrogen-demand/
2 US Office of Energy Efficiency & Renewable Energy

Product Information As of 11 Apr 2024

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 11 Apr 2024

NAV/Unit (A$) 5.04100000
Currency (NAV) AUD
Shares Outstanding 6,821,305
AUM (A$) 34,385,883.11
NAV History File View

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
Ticker SOGLHYDN

Distributions As of 28 Mar 2024

12-Month Yield 0.18%
12-Month Franking Level 0.00%
Distribution Frequency Annually
Distribution History View

Performance Table As of 11 Apr 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 0.64% 0.69% -0.05% 0.27%
3 Months -2.43% -2.31% -0.12% 0.28%
1 Year -28.48% -28.07% -0.41% 0.33%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. -23.78% -23.21% -0.56% 0.38%

Top Holdings As of 12 Apr 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
10.65 BLOOM ENERGY C-A BDD1BB8 11.38 209,671 3,660,999
8.86 PLUG POWER INC 2508386 2.96 671,136 3,048,044
7.11 DOOSAN FUEL CELL BH4G7R8 19,170.00 112,169 2,418,620
7.03 BALLARD POWER 2120371 3.08 511,515 2,417,286
6.10 NEL ASA B02NR83 5.19 2,861,904 2,096,293
3.94 FUELCELL ENERGY BK6S6J8 1.14 773,650 1,353,220
3.87 FTAI INFRASTRUCT BPSJQ05 6.43 134,967 1,331,550
3.81 DOOSAN CO LTD 6661111 151,800.00 7,102 1,212,621
3.73 CHUNG-HSIN 6194811 193.00 127,000 1,166,881
3.44 KAORI HEAT B02Q5L1 356.00 69,000 1,169,404
3.19 ITM POWER PLC B0130H4 0.54 1,056,322 1,095,711
2.58 CHART INDUSTRIES B19HNF4 155.48 3,724 888,389
2.53 CERES POWER HOLD BG5KQW0 1.37 330,389 871,369
2.51 BURCKHARDT COMPR B176416 596.00 861 863,987
2.43 LINDE PLC BNZHB81 453.00 1,200 834,062
2.34 DONGJIN SEMICHEM 6219297 47,950.00 15,310 825,727
2.33 JOHNSON MATTHEY BZ4BQC7 17.84 23,370 800,865
2.25 HYSTER-YALE B7LG306 63.87 7,907 774,868
2.18 MITSUBISHI CHEMI B0JQTJ0 917.00 81,400 747,159
2.12 LUXFER HOLDINGS BF5GRT5 10.34 46,012 729,979
2.10 KEPPEL INFRASTRU B1P31B8 0.50 1,290,065 723,284
2.10 MICO LTD 6427722 11,200.00 57,125 719,643
1.93 CHEMOURS CO BZ0CTP8 27.30 15,830 663,075
1.91 UMICORE BF44466 21.00 19,036 656,630
1.91 AIR PRODS & CHEM 2011602 236.25 1,810 656,099
1.82 GEOLIT ENERGY CO BYVZ1C0 2,690.00 214,377 648,639
1.58 AKER HORIZONS AS BMG4FY8 3.27 1,182,122 544,889
1.53 VINA TECH CO LTD BBSPWY1 45,150.00 10,438 530,088
1.36 ENERGY VAULT HOL BNYF0L2 1.26 242,540 468,892
1.07 POWERCELL SWEDEN BTHH8L3 29.00 89,287 368,528
Holdings are subject to change.

Sector Breakdown As of 12 Apr 2024

Sector Weight (%)
Industrials 79.6
Materials 17.1
Information Technology 3.6

Country Breakdown As of 12 Apr 2024

Country Weight (%)
United States 39.8
South Korea 18.7
Britain 10.2
Norway 7.7
Taiwan 7.2
Canada 7.0
Switzerland 2.5
Japan 2.2
Singapore 2.1
Belgium 1.9
Sweden 1.1

Research

FAQs

  • 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.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

Back to Top