These are 2021’s subsequent large themes, International X and Amplify ETFs say
Its potential to take the clear power trade by storm drove International X ETFs to launch its Hydrogen ETF (HYDR) in mid-July, the agency’s senior vice chairman and head of analysis and technique, Jay Jacobs, advised CNBC’s “ETF Edge” this week.
“To return slightly bit into historical past, 11 years in the past final week we launched a lithium and battery tech ETF,” Jacobs mentioned within the Monday interview. “Over the course of 11 years, electrical autos have gone from about 0% of the worldwide auto trade to about 3% of the worldwide auto trade.”
Hydrogen’s trajectory over the subsequent a number of a long time may look very comparable, Jacobs mentioned.
“We expect the subsequent long-term pattern goes to be the shift to hydrogen, not essentially displacing lithium batteries, however only a new type of clear energy that may energy vans, that may energy trains, that may energy boats,” he mentioned.
Although Tesla CEO Elon Musk famously wrote off hydrogen energy as “mind-bogglingly silly” in 2019, it has loads of use instances in heavy industrial capacities, Jacobs mentioned.
For instance, whereas it could not make sense to have a gasoline cell-powered passenger automobile, gasoline cells may scale back weight hundreds for vans as a result of they’re considerably lighter than batteries, he mentioned.
“From a pure effectivity perspective, heavy transport actually favors hydrogen. On high of that, you see far more photo voltaic, you see far more wind that is being put onto the grid that is creating energy intermittently,” he mentioned.
“Hydrogen is definitely a really environment friendly method of storing that extra energy when it is not getting used. You possibly can put that hydrogen in a truck, you possibly can ship it over to a different nation that possibly needs it, but it surely’s a really environment friendly type of battery for extra renewable energy.”
Clear residing may be a part of clear power as certainly one of 2021’s high themes, Amplify ETFs founder and CEO Christian Magoon mentioned in the identical “ETF Edge” interview.
Amplify has seen a variety of curiosity in its just lately launched Cleaner Residing ETF (DTOX), notably from these additionally focused on ESG, or environmental, social and governance-based investing, Magoon mentioned.
The agency can be getting ready to launch an digital and on-line buying and selling ETF that holds the likes of Coinbase, Charles Schwab and Robinhood, the CEO mentioned.
“This digital asset market, on-line buying and selling market that is app-friendly, mobile-friendly, we predict that is a fast-growing space inside monetary providers that’s actually capitalizing on the pattern around the globe for buyers to commerce shares, bonds, commodities, cryptocurrencies, digital property and that shall be launched right here in September,” he mentioned.