LGIM unveils hydrogen economy ETF

Europe
On the 02/11/21 at 7:35AM
The British asset manager bets on the growth potential of hydrogen innovation and technologies in the transition to a low-carbon world.
(Pixabay)

London-headquartered Legal & General Investment Management (LGIM) on Wednesday announced the launch of the L&G Hydrogen Economy UCITS ETF for European investors.

The ETF is exposed to the thematic of the transition to a low-carbon, hydrogen economy, including technologies and firms that enable the production of cheaper, clean forms of hydrogen and those that are expected to play an integral role in the hydrogen economy.

LGIM's ETF relies on GlobalData's database of companies active in the hydrogen industry and provides exposure to the full hydrogen value chain. The UK firm specified that it encompasses companies with a minimum market cap of $200m, including 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.

‘Green’ hydrogen produced without fossil fuels, could reduce up to 830 million tonnes of global CO2 emissions according to IEA while the growth of the hydrogen economy is expected to be worth $2.5trn in revenues and $11trn in infrastructure potential by 2050, assesses Bank of America.

The ETF is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana, Six Swiss Exchange and the NYSE Euronext, and is available to UK and European intermediary and retail investors.