Risk of Hydrogen Stocks: You may lose money up to the total loss of your investment due to Emerging Markets Risk and Risk of investing in smaller companies as described in the Main Risk Factors, KIID and prospectus.
1 Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an Electrified Economy. April 2021.
https://energy-transitions.org/wp-content/uploads/2021/04/ETC-Global-Hydrogen-Report.pdf
3 Making the Hydrogen Economy Possible: Accelerating Clean Hydrogen in an Electrified Economy. April 2021.
https://energy-transitions.org/wp-content/uploads/2021/04/ETC-Global-Hydrogen-Report.pdf
The hydrogen economy comprises a range of types of companies that VanEck classifies as: pure-play hydrogen stocks, hydrogen gas producers, fuel cell producers, hydrogen storage and electrolyser producers.
The performance of some has been volatile in the short-term: they have risen quickly at times when ‘green’ stocks have been in favor, only to correct when the prospect of rising global interest rates has dampened enthusiasm for so-called long duration stocks.
Yet, over the longer term, many hydrogen stocks should be a play on the growth of the companies they represent.
Because of the relatively newness of hydrogen technology, many regard hydrogen stocks as having a relatively high risk.
You can reduce the investment risk by buying a Hydrogen ETF rather than buying a handful of individual hydrogen stocks. A Hydrogen ETF gives exposure to a broad set of these stocks. It is rebalanced regularly, to avoid over exposure to a hydrogen stock that has become over-valued, or under exposure to a hydrogen stock that has become under-valued. The VanEck Hydrogen ETF offers a low-cost, diversified way to back the expansion of the hydrogen economy.
This occurs when it is difficult to buy or sell a specific financial instrument. If the relevant market is illiquid, it may be impossible to make a transaction or liquidate a position at an advantageous or moderate price, or at all.
The fund may invest a high percentage of its assets in a smaller amount of issuers or may invest a greater proportion of its assets in a single issuer. Consequently, gains and losses on a single investment may have a larger influence on the Fund's Net Asset Value and may increase the volatility of the Fund compared to more diversified funds.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. In comparison with larger companies, smaller companies, may have a shorter history of operations, fewer financial resources, less strength to compete, a less diversified product line and a smaller trading market for their securities. It may also be more susceptive to market pressure. This is one of the risk factors of hydrogen stocks.
