The hydrogen sector is rapidly gaining momentum as investors seek to capitalize on the growing demand for clean energy solutions. Hydrogen fuel cells, in particular, are being hailed as a promising technology that can power everything from cars and buses to data centers and industrial processes.
Two of the most popular exchange-traded funds (ETFs) focused on hydrogen investments are the HYDR Global X Hydrogen ETF and the HDRO Defiance ETFs’ Hydrogen ETF. Both ETFs offer investors a diversified portfolio of companies involved in the production, transportation, and utilization of hydrogen.
But which companies are actually making up these ETFs? And how do their holdings compare?
Here is a breakdown of the top 17 holdings for each ETF:
As you can see, both ETFs have a strong focus on companies involved in the production and utilization of hydrogen fuel cells, with Ballard Power Systems, Plug Power Inc., and FuelCell Energy Inc. being among the top holdings for both funds.
However, there are some key differences between the two ETFs. The HYDR Global X Hydrogen ETF has a slightly higher allocation to companies focused on the transportation sector, such as Cummins Inc. and Royal Dutch Shell PLC. On the other hand, the HDRO Defiance ETFs’ Hydrogen ETF has a stronger focus on companies involved in the production of hydrogen fuel cells, with a larger allocation to Ballard Power Systems.
Ultimately, both ETFs offer investors a diversified portfolio of companies involved in the hydrogen sector, but they have distinct investment strategies and holdings. As such, it’s essential for investors to carefully review their portfolios and consider their individual financial goals before making any investment decisions.
Whether you’re an experienced investor or just starting out, the hydrogen sector is certainly worth keeping an eye on – with its promising technologies and growing demand, there are many opportunities for growth in this exciting new field.
