Hydrogen exchange-traded funds (ETFs) enable investors to play the potential boom in this low-emissions fuel. Several forecasters see hydrogen growing into a more than $1 trillion market. That could fuel lots of growth for companies focused on the sector.
Picking the right hydrogen stock to play this growth opportunity might not be easy. Potential mismanagement or financial issues could cause a leading hydrogen company to underperform its promise and rivals.
That's why investors might want to consider investing in an exchange-traded fund (ETF) focused on the hydrogen stock market sector to gain broader exposure to the entire trend. Here's a look at the best hydrogen ETFs to consider buying.
Exchange-Traded Fund (ETF)
Best Hydrogen ETFs
Best Hydrogen ETFs for 2025
There are only two pure-play sector ETFs focused on hydrogen. Here's a closer look at the top ETFs to buy for investors seeking focused exposure to the hydrogen sector. Investors seeking additional options should consider one of these clean energy ETFs, some of which hold hydrogen stocks in addition to alternative energy stocks.
Global X Hydrogen ETF
1. Global X Hydrogen ETF
The Global X Hydrogen ETF (HYDR 0.97%) was formed in 2021. The hydrogen ETF only had about $40 million in assets under management (AUM) as of late 2024. The passively managed ETF aims to track the performance of the Solactive Global Hydrogen Index.
The ETF invests in companies that will benefit from the growth of the hydrogen industry, including those involved in its production, the integration of the fuel into energy systems, and the development and manufacturing of hydrogen fuel cells, electrolyzers, and other technologies related to using hydrogen. The ETF held 25 hydrogen stocks in late 2024, led by:
- Bloom Energy (BE 0.0%): 19.9% of the fund's holdings
- Plug Power (PLUG 0.0%): 12.4%
- Nel ASA (NLLS.F 1.55%): 8.9%
- Doosan Fuel Cell: 7.9%
- FuelCell Energy (FCEL -1.61%): 6.8%
It provides investors with broad exposure to hydrogen stocks for a reasonable ETF expense ratio of 0.5%.
Defiance Next Gen H2 ETF
2. Defiance Next Gen H2 ETF
The Defiance Next Gen H2 ETF (NYSEMKT:HDRO) was also formed in 2021 and only had about $20 million in AUM as of late 2024. It tracks the BlueStar Global Hydrogen and Next Gen Fuel Cell Index. It holds companies that generate at least half their revenue from developing hydrogen-based energy sources, fuel-cell technologies, and industrial gases. The ETF held 30 stocks as of late 2024, led by:
- Bloom Energy: 21.7% of the fund's holdings
- Plug Power: 10.4%
- Ballard Power Systems (BLDP -2.7%): 7.5%
- Doosan Fuel Cell: 7.3%
- Fuelcell Energy: 6.3%
This hydrogen ETF provides similar broad exposure to the top hydrogen stocks as the Global X Hydrogen ETF but with a lower expense ratio of 0.3%.
Related investing topics
Should I buy?
Should I buy hydrogen ETFs?
Investing in a hydrogen ETF can be a great way to gain broad exposure to the top stocks in this potentially massive industry. Buying an ETF can help investors prevent the potential pitfalls of being right on their investment thesis (hydrogen demand will grow exponentially) but select the wrong investment vehicle to express that view (e.g., a stock underperforming due to mismanagement or financial issues).
Investors who want to go the ETF route have a couple of solid options in the hydrogen space.
FAQ
Hydrogen ETF FAQ
Which is the best hydrogen ETF?
There are two pure-play hydrogen ETFs: Global X Hydrogen ETF and the Defiance Next Gen H2 ETF. They share similar focuses and top holdings.
The biggest difference is their ETF expense ratios. The Defiance Next Gen H2 ETF has the lowest ETF expense ratio at 0.3%. That makes it stand out as the best option because it provides similar upside exposure to the hydrogen trend at a slightly lower cost than Global X Hydrogen ETF.
What ETF is focused on hydrogen?
Two ETFs focus solely on hydrogen: Global X Hydrogen ETF and the Defiance Next Gen H2 ETF.
What are the best hydrogen stocks to buy?
Some of the best hydrogen stocks to buy are Air Products (NYSE: APD), BP (NYSE: BP), Plug Power, Bloom Energy, and Linde (NYSE: LIN). All five companies have meaningful and growing hydrogen businesses, putting them in strong positions to capitalize on the potential $1 trillion hydrogen megatrend.
Is there a hydrogen investment fund?
Investors interested in a hydrogen investment fund could consider an exchange-traded fund (ETF) focused on the space. There are currently two hydrogen-focused ETFs: Global X Hydrogen ETF and the Defiance Next Gen H2 ETF.
