Two energy-themed ETFs with a focus on wind power and hydrogen have been introduced by Invesco.
The London Stock Exchange, Deutsche Boerse, Borsa Italiana, and Six Swiss Exchange all list both ETFs.
The Invesco Hydrogen Economy Ucits ETF (HYDE) will make investments in opportunities related to the development of wind turbines, the production of materials, and grid modernization. Both onshore and offshore wind energy projects are represented via stakes in the fund.
The Invesco Wind Energy Ucits ETF (WNDE) will focus on businesses involved in the production, storage, conversion, and transportation of hydrogen. Additionally, it will make investments in innovation and fuel cell development.
While HYDE mimics the WilderHill Hydrogen Economy index, WNDE monitors the WilderHill Wind Energy index.
Both strategies may invest in a variety of market caps and have an overall expense ratio of 0.60%.
"Almost half of European ETF flows this year have been into products with an ESG classification, and 40% of those assets were into funds with climate objectives or thematic exposures such as clean energy," said Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco.
"A theme that is relatively new and largely unknown can offer strong growth potential but requires expertise to identify those companies with meaningful exposure to the theme."
The Sustainable Finance Disclosure Regulation categorizes the pair of ETFs as Article 9 information (SFDR).
For businesses that have a large exposure to fossil fuels, a screening exclusionary process is in place.
As the globe starts to return to normal, we should refocus attention on decarbonization and boosting our usage of greener energy sources, according to Christopher Mellor, head of EMEA equities and commodities ETF product management at Invesco.
He continued, "Global capacity for wind will need to increase by more than 500% by 2050 versus pre-pandemic levels, while hydrogen could have even higher growth potential given a lack of alternative clean energy sources for these industries."
By fLEXI tEAM