The HGEN ETF provides investors with exposure to a global portfolio of companies involved in the hydrogen value chain, including hydrogen production, fuel cells, electrolysers, storage, distribution and related technologies, offering diversified access to the emerging clean hydrogen economy. The Global X Hydrogen ETF (HGEN) has come under heavy pressure in July as investors continued to rotate away from speculative clean energy themes. Sentiment was further dented after the Albanese government cut $1 billion from its flagship Hydrogen Headstart subsidy program, weakening the outlook for green hydrogen projects.
Ongoing weakness in major constituent Plug Power, driven by cash burn concerns and delayed project execution, added to the negative sentiment, while funding challenges for hydrogen aviation start-up ZeroAvia and analyst downgrades of Industrie De Nora reinforced concerns over the sector’s near-term outlook.
However, one notable bright spot was Bloom Energy (BE US), HGEN’s largest holding, which bounced well in the last fortnight after reporting a strong quarterly result, raising full-year guidance and receiving an analyst upgrade. However, Bloom’s strength was insufficient to offset widespread weakness across the broader hydrogen sector, leaving HGEN among the worst-performing ASX-listed ETFs for the month.
- We find it hard to value this particular basket of stocks, and from a technical perspective the momentum is scary.
