Rising Tide of Hydrogen ETFs in South Korea Sparks Investor Interest
Key Ideas
- South Korea's hydrogen ETFs are leading in returns in the domestic market, with the 'ARIRANG Global Hydrogen & Next Generation Fuel Cell MV' ETF showing impressive performance.
- Investing in 25 global companies in the hydrogen economy industry value chain, this ETF is attracting investors with a yield of over 30% in the past month.
- The rise of hydrogen ETFs is driven by the increasing demand for alternative energy sources like hydrogen fuel cells, especially in data centers of tech giants like Microsoft and Amazon.
- Companies like Bloom Energy are experiencing significant growth, with a surge in stock value and expansion contracts for fuel cell supplies to prominent data centers.
In South Korea, the domestic exchange-traded fund (ETF) market is witnessing a surge in hydrogen ETFs, with the 'ARIRANG Global Hydrogen & Next Generation Fuel Cell MV' ETF leading the way. This ETF has delivered outstanding returns, with a 16% yield over the past week and more than 30% over the past month. It invests in 25 global companies involved in the hydrogen economy industry value chain and fuel cells for carbon neutrality. The ETF tracks the 'Blue Star Hydrogen & NextGen Pure Cell Index' of Microvision in the U.S. and includes companies like HDRO, Bloom Energy, and Plug Power from the U.S., as well as domestic companies like Doosan Fuel Cell and Bumhan Fuel Cell. Other hydrogen ETFs such as 'TIGER Fn Renewable Energy' and 'KODEX K-Renewable Energy Active' have also shown strong returns. The demand for hydrogen fuel cells is expected to rise further, especially with big tech companies integrating fuel cells into data centers due to concerns over power depletion from artificial intelligence. Companies like Bloom Energy have seen substantial stock value growth, with Bloom Energy's stock rising 87% since March. The positive trend in hydrogen ETFs reflects the growing interest in alternative energy sources and the potential for hydrogen fuel cells to play a significant role in addressing energy needs.