HDRO Profile
The Defiance Next Gen H2 ETF is designed to provide investors with targeted exposure to companies involved in the hydrogen economy. This exchange-traded fund tracks a rules-based index that reflects the performance of global equity securities from companies engaged in the development and commercialization of hydrogen-based energy sources and fuel cell technologies. By focusing on this emerging sector, the fund aims to capture the potential growth associated with the expansion of hydrogen energy solutions.
Under normal market conditions, the ETF invests at least 80% of its net assets, including any borrowings for investment purposes, in securities of companies directly involved in the hydrogen sector. This includes firms that are actively developing hydrogen production technologies, fuel cell systems, and related infrastructure. The fund's concentration in hydrogen-related industries aligns with its objective of providing focused exposure to a sector poised for significant technological advancement and investment opportunities.
The index used by the Defiance Next Gen H2 ETF is designed to include only those companies that meet specific criteria related to their involvement in hydrogen technology. This selection process ensures that the fund remains closely aligned with the hydrogen sector's growth prospects. As a result, the ETF may include a diverse range of companies, from large industrial firms to smaller, innovative enterprises, all contributing to the development of hydrogen energy solutions.
Despite its specialized focus, the fund is non-diversified, meaning that its performance is closely tied to the fortunes of the hydrogen sector. Investors should be aware that this concentration may lead to higher volatility compared to more diversified investment options. The Defiance Next Gen H2 ETF represents an opportunity for investors seeking to capitalize on the growth potential of hydrogen energy and fuel cell technologies while accepting the associated sector-specific risks.
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