New Listing

Invesco unveils wind and hydrogen thematic ETFs

HYDE and WNDE track WilderHill indices

Theo Andrew

Gary Buxton headshot

Invesco has expanded its thematic range with the launch of two ETFs tracking wind energy and hydrogen.

The Invesco Wind Energy UCITS ETF (WNDE) and the Invesco Hydrogen Economy UCITS ETF (HYDE) are listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and Six Swiss Exchange with total expense ratios (TERs) of 0.60%.

WNDE tracks the WilderHill Wind Energy index while HYDE replicates the WilderHill Hydrogen Economy index, both of which are equally weighted across 50 constituents.

WNDE will invest in global companies focusing on improving wind turbines, providing materials for use in wind energy, modernising the grid and includes companies involved in offshore and onshore wind energy.

Meanwhile, HYDE offers exposure to companies involved in hydrogen activities including hydrogen generation, storage, conversion, transportation, innovation and the advancement of fuel cells.

Although equally weighted, both ETFs invest in firms across the market-cap spectrum.

For example, 23% of companies in WNDE are large-cap stocks, 33% are mid-caps and 44% are small-caps.

Companies that have significant exposure to fossil fuels or are involved in activities that have an adverse impact on societies and ecosystems will be excluded.

WNDE and HYDE are classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

Gary Buxton (pictured), head of EMEA ETFs and indexed strategies at Invesco, said the WilderHill indices provide access to some of the most experienced clean energy firms.

“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.

“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.”

Christopher Mellor, head of EMEA equity and commodity ETF product management at Invesco, added: “As the world begins returning to normality, we should re-focus attention on decarbonisation and increasing our use of cleaner energy sources.

“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.”

Invesco already has two green energy ETFs, the $54m Invesco Solar Energy UCITS ETF (ISUN), which launched in August last year, and the $68m Invesco Global Clean Energy UCITS ETF (GCLX) which was recently upgraded from Article 8 to 9 under SFDR.

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