Invesco unveils wind and hydrogen ETFs

Invesco hydrogen windInvesco has launched two energy-thematic ETFs focused on tracking hydrogen and wind power.

Both ETFs are listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and Six Swiss Exchange.

The Invesco Hydrogen Economy Ucits ETF (HYDE) will invest in opportunities surrounding wind turbine development, materials and manufacturing and grid modernisation. The fund includes holdings in both onshore and offshore wind projects.

The Invesco Wind Energy Ucits ETF (WNDE) will target companies involved at various stages of the hydrogen cycle, including generation, storage, conversion and transportation. It will also invest in innovation and the advancement of fuel cells.

WNDE tracks the WilderHill Wind Energy index while HYDE replicates the WilderHill Hydrogen Economy index.

Both strategies have a total expense ratio of 0.60% and can invest across the market-cap spectrum.

Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said: “Almost half of European ETF flows this year have been into products with an ESG classification, and 40% of those assets were into funds with climate objectives or thematic exposures such as clean energy.

“A theme that is relatively new and largely unknown can offer strong growth potential but requires expertise to identify those companies with meaningful exposure to the theme.”

The pair of ETFs are classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

An exclusionary screen is in place for companies with significant exposure to fossil fuels.

Christopher Mellor, head of EMEA equity and commodity ETF product management at Invesco, said: “As the world begins returning to normality, we should re-focus attention on decarbonisation and increasing our use of cleaner energy sources.

“Global capacity for wind will need to increase by more than 500% by 2050 versus pre-pandemic levels, while hydrogen could have even higher growth potential given a lack of alternative clean energy sources for these industries,” he added.

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