'Launch of ARIRANG Global Hydrogen & Next-Generation Fuel Cell MV'
[Asia Economy Reporter Hwang Yoon-joo] Hanwha Asset Management has launched its second ETF product related to eco-friendly and future industries, following last month's listing of 'ARIRANG Global Rare Earth Strategic Resources Companies MV.'
Hanwha Asset Management announced on the 15th that it has listed the 'ARIRANG Global Hydrogen & Next-Generation Fuel Cell MV' (Ticker: A419650) exchange-traded fund (ETF) on the Korea Exchange.
'ARIRANG Global Hydrogen & Next-Generation Fuel Cell MV' consists of 25 to 30 global companies involved in hydrogen production, storage, transportation, refueling, and utilization. The portfolio is composed of companies generating more than 50% of their revenue from hydrogen or hydrogen fuel cell projects, with a stronger focus on fuel cell-related companies. The ETF tracks the BlueStar Hydrogen & NextGen PureCell Index by the US-based MVIS.
Key constituent stocks include ▲Plug Power (US-based developer of fuel cells for forklifts and hydrogen fuel cell systems), ▲Nel (Norwegian developer of water electrolysis technology and hydrogen production, storage, and distribution solutions), ▲Ballard Power Systems (Canadian specialist in mobility fuel cells), and ▲Doosan Fuel Cell (Korean specialist in power generation fuel cells).
As of the end of January, the country weightings are the US (20.6%), the UK (18.3%), Canada (10.3%), France (10.3%), and Korea (9.2%). The US, with many transportation and power generation fuel cell companies, and Europe, home to major hydrogen producers, hold significant proportions.
Currently, there are three global hydrogen-related ETFs in the US, one in Australia, and two in Europe. Although their operating periods are around one year, making it premature to assess long-term performance, hydrogen is considered an indispensable energy source for carbon neutrality, making these ETFs attractive for long-term investment.
Kim Seong-hoon, Head of ETF Business at Hanwha Asset Management, stated, "The transition from a carbon economy to a hydrogen economy is an inevitable trend. Our government and major companies are aligning with this global movement toward hydrogen economy industrialization through initiatives such as the enactment of the world's first Hydrogen Act and the H2 Business Summit." He added, "It is necessary to add related ETFs to portfolios for long-term diversified investment rather than focusing on individual stocks."
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