Invesco announces thematic ETFs for wind and hydrogen

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

WNDE duplicates the WilderHill Wind Energy index, whilst HYDE replicates the WilderHill Hydrogen Economy index. Both indices have 50 constituents that are weighted equally.

WNDE will invest in worldwide firms with a focus on upgrading wind turbines, supplying materials for wind energy, and modernizing the system, as well as offshore and onshore wind energy enterprises.

HYDE provides exposure to enterprises engaged in hydrogen-related activities, such as hydrogen generation, storage, conversion, transportation, innovation, and fuel cell development.

Although equally weighted, both ETFs invest across the spectrum of market capitalization.

For instance, 23% of WNDE equities are large-cap, 33% are mid-cap, and 44% are small-cap.

Companies with considerable exposure to fossil fuels or activities that have a negative impact on societies and ecosystems will be excluded.

The Sustainable Finance Disclosure Regulation classifies WNDE and HYDE under Article 9 (SFDR).

Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, stated that the WilderHill indexes offer exposure to some of the most seasoned clean energy companies.

“Nearly half of European ETF flows this year have been invested in products with an ESG classification, and forty percent of these assets have been invested in funds with climate objectives or thematic exposures such as clean energy.

“A relatively new and mostly unknown theme can offer substantial development potential, but it requires knowledge to identify the enterprises with significant exposure to the theme.”

Christopher Mellor, head of EMEA equity and commodity ETF product management at Invesco, adding, “As the globe returns to normalcy, we must refocus our efforts on decarbonisation and expanding our usage of cleaner energy sources.

“By 2050, global wind capacity will need to increase by more than 500% compared to pre-pandemic levels, whereas hydrogen could have an even greater development potential due to the absence of alternative clean energy sources for these industries.”

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