Legal & General Investment Management (LGIM) has today (10th February) announced its first L&G Hydrogen Economy UCITS ETF in Europe. It will provide investors with exposure to the long-term investment opportunity from the hydrogen economy drive.
The ETF will be listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana, Six Swiss Exchange and the NYSE Euronext.
It covers a wide range of companies in the hydrogen value chain with a minimum market cap of $200 million, including electrolyser producers, hydrogen producers, fuel-cell manufacturers, mobility companies, etc.
It is understood that around half of the assets are from companies with large market capitalisation companies such as Daimler, Toyota and Linde. It tracks the Solactive Hydrogen Economy Index NTR.
Hydrogen indices have been used to track the industry performance based on the key players in the value chain. MV Index Solutions has launched a new hydrogen index called MVIS Global Hydrogen Economy Index in December 2020.
Howie Li, 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.”
James Crossley, Head of UK Retail Sales at LGIM, added: “At LGIM, we believe in giving investors targeted, specific exposure to the full value chain of low-carbon solutions across the power production, storage and distribution energy cycles.”
LGIM has already maintained a suite of sustainable thematic ETFs, such as the L&G Clean Energy UCITS ETF and the L&G Battery Value-Chain UCITS ETF.