ETF issuer Global X ETFs has announced the launches of two UCITS ETFs on London Stock Exchange and Deutsche Börse Xetra: the Global X Wind Energy UCITS ETF (WNDY) and the Global X Hydrogen UCITS ETF (HYDR).
The firm writes that these two sustainable-themed funds represent Global X’s latest additions to its UCITS product line-up in Europe and showcase the firm’s continued commitment to the European market.
Renewable energy has climbed as a portion of total global energy production over the past decade. Its growth will need to accelerate significantly in the coming decades to meet net-zero emissions goals and curb climate change. Renewables’ share of global electricity generation reached 29 per cent in 2020, 2 per cent more than at the end of 2019 and almost 10 per cent more than at the end of 2010. Decreasing technology costs, innovation and supportive policy have continued to propel the growth of wind and hydro power, and this growth is likely to continue to accelerate over the coming decade.
“The transition to a clean energy future will require tens of trillions of dollars of investment in the coming decade. Renewable and clean energy sources like wind energy are continuing to gain share on fossil fuel-based sources as related technologies become more affordable, and hydrogen will likely play a key role in decarbonising hard-to-electrify sectors like transportation, buildings, and industry,” says Morgane Delledonne, Director of Research, Europe. “Through the launch of these two UCITS ETFs, Global X is bringing investors targeted access to companies involved in advancements in wind energy and hydrogen.”
WNDY and HYDR seek to invest in companies that stand to benefit from the advancement of the global wind energy industry and the global hydrogen industry, respectively. WNDY, tracking the Solactive Wind Energy v2 index and with an expense ratio of 0.50 per cent, provides access to companies involved in wind energy systems, wind power production, wind energy technology, and wind power integrations and maintenance. HYDR, tracking the Solactive Global Hydrogen v2 index and with an expense ratio of 0.50 per cent, provides access to companies involved in hydrogen production; the integration of hydrogen into energy systems; and the development and manufacturing of hydrogen fuel cells, electrolysers, and other technologies related to the utilisation of hydrogen as an energy source.