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LGIM launches Europe’s first hydrogen economy ETF

Tom Eckett

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Legal & General Investment Management (LGIM) has expanded its thematic range with the launch of Europe’s first hydrogen economy ETF.

The L&G Hydrogen Economy UCITS ETF (HTWO) is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and the SIX Swiss Exchange with a total expense ratio (TER) of 0.49%.

Tracking the Solactive Hydrogen Economy index, HTWO offers investors exposure to the transition to a low-carbon, hydrogen economy.

This includes companies that are enabling the production of cheaper, cleaner forms of hydrogen and those that are expected to play an important role in this economy.

To create the index, LGIM has partnered with GlobalData to leverage its database of companies engaged in the hydrogen economy.

With a minimum market cap of $200m, companies in industries such as electrolyser manufacturers, hydrogen producers, fuel-cell manufacturers, specialist mobility providers, fuel-cell component suppliers, key industrial and utility companies, and others in the supply chain will be included in the index.

Commenting on the launch, Howie Li (pictured), head of ETFs at LGIM, said: “Access to clean hydrogen will be key to lowering emissions in harder to abate industries where electrification alone is not enough.

“The commitments being made to the hydrogen economy by governments and businesses around the world are creating long-term investment opportunities with short-term catalysts.”

This is another sign of the LGIM's continued push into the thematic ETF spaceThe latest launch takes the firm's thematic ETF range to ten:

Demand for thematic ETFs has exploded over the past 12 months with the segment seeing a record €9.5bn inflows in Europe in 2020, according to data from Morningstar.

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