For investors seeking momentum, Global X Hydrogen ETF HYDR is probably on the radar. The fund just hit a 52-week high and has soared 102.9% from its 52-week low of $14.95 per share.
Are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
HYDR in Focus
The underlying Solactive Global Hydrogen Index provides exposure to companies that are positioned to benefit from further advances in the field of hydrogen technology. HYDR ETF charges 50 bps in annual fees (see: all the Alternative Energy ETFs here).
Why the Move?
The AI industry's expansion has led to an increased need for clean and sustainable energy sources, which includes hydrogen as a potential fuel. An IEA report said that by 2026, the AI industry is expected to consume at least 10 times the electricity demand it had in 2023, as quoted on a CNBC article issued in April 2024.
The hydrogen market is expected to grow massively. It could reach a valuation of $312.9 billion by 2030, marking a CAGR of 6.80%, per a markets and markets research report. Surging demand for low-emission and sustainable energy is driving the upside in global hydrogen stocks, per the markets and markets report.
More Gains Ahead?
HYDR might remain strong, given its positive weighted alpha of 46.62 (per barchart.com). There is definitely still some promise for investors who want to ride on this surging ETF.
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Global X Hydrogen ETF (HYDR): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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