Average Daily Volume
5967
Fund Overview
The Defiance Next Gen H2 ETF (HDRO) is an exchange-traded fund that seeks to provide investment results that correspond to the performance of the BlueStar Hydrogen & NextGen Fuel Cell Index. HDRO invests in companies involved in the hydrogen and fuel cell industry, including those engaged in the production, storage, and distribution of hydrogen, as well as companies developing fuel cell technologies. The fund offers exposure to a niche but rapidly growing sector focused on clean energy solutions. HDRO is designed for investors looking to capitalize on the potential of hydrogen as a key component in the global transition to renewable energy sources.
- Asset Class
-
Equity
- Industry
-
Hydrogen
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
61 %
- Dividend Date
-
Why Invest in the HDRO ETF?
Potential Benefits
- Provides exposure to the emerging hydrogen and fuel cell sector, which is expected to grow significantly as part of the global clean energy transition.
- Diversifies a portfolio with innovative companies at the forefront of hydrogen technology.
- Offers a thematic investment opportunity aligned with environmental, social, and governance (ESG) principles.
- Tracks a specialized index (BlueStar Hydrogen & NextGen Fuel Cell Index) focused solely on hydrogen-related companies.
- May benefit from government policies and subsidies supporting hydrogen infrastructure development.
Potential Risks
- Concentrated exposure to a niche sector, which can be volatile and subject to rapid changes in technology and regulation.
- Performance heavily dependent on the adoption rate of hydrogen as a mainstream energy source, which is still uncertain.
- Higher expense ratio compared to broader clean energy ETFs due to its specialized focus.
- Limited liquidity and smaller asset base may lead to wider bid-ask spreads.
- Susceptible to geopolitical and policy risks, as hydrogen development often relies on government support.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
-
|
-
|
-
|
-
|
| 2025 |
-6.2%
|
-6.1%
|
-10.7%
|
-5.1%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
| 2024 |
-11.0%
|
-8.5%
|
+0.4%
|
-6.3%
|
+25.3%
|
-19.1%
|
+0.2%
|
-7.2%
|
+3.9%
|
-13.5%
|
+12.9%
|
-7.8%
|
| 2023 |
+19.5%
|
-7.5%
|
-5.9%
|
-9.9%
|
-6.1%
|
+0.6%
|
+8.5%
|
-14.6%
|
-14.0%
|
-14.0%
|
+10.2%
|
+3.1%
|
| 2022 |
-23.5%
|
+9.2%
|
+4.9%
|
-15.5%
|
-6.7%
|
-16.8%
|
+13.5%
|
+1.9%
|
-28.4%
|
-1.6%
|
+18.0%
|
-11.1%
|
| 2021 |
-
|
-
|
-
|
-6.4%
|
-4.9%
|
+0.8%
|
-12.2%
|
+0.1%
|
-8.2%
|
+23.6%
|
-8.1%
|
-14.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
BE
|
BLOOM ENERGY CORP CLASS A |
8.4 % |
|
PLUG
|
PLUG POWER INC |
7.6 % |
|
FCEL
|
FUELCELL ENERGY INC |
5.9 % |
|
LIN
|
LINDE PLC |
4.8 % |
|
APD
|
AIR PRODUCTS & CHEMICALS INC |
4.4 % |
Top 10 holdings shown, out of 25 total holdings.
Related ETFs: HDRO vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
HDRO seeks to track the performance of the BlueStar Hydrogen & NextGen Fuel Cell Index, which includes companies engaged in hydrogen production, fuel cell technology, and related infrastructure. The index is designed to capture the growth potential of the hydrogen economy and is rebalanced quarterly to ensure it reflects the evolving landscape of the industry. The fund primarily holds common stocks of companies involved in the hydrogen sector, offering direct exposure to this niche market. HDRO is passively managed, aiming to replicate the index's performance with minimal tracking error.
Frequently Asked Questions
What types of companies does HDRO invest in?
HDRO invests in companies involved in hydrogen production, fuel cell technology, and related infrastructure, including those engaged in storage and distribution.
How does HDRO differ from other clean energy ETFs?
HDRO is specifically focused on hydrogen and fuel cell technologies, whereas broader clean energy ETFs like ICLN or QCLN include solar, wind, and other renewable energy sectors.
Is HDRO suitable for long-term investment?
HDRO may be suitable for long-term investors who believe in the growth potential of hydrogen as a clean energy source, but it carries higher volatility due to its niche focus.
Does HDRO pay dividends?
HDRO may pay dividends, but its primary focus is capital appreciation, as many hydrogen-related companies are growth-oriented and may not yet be profitable.
Industry Overview
The Defiance Next Gen H2 ETF (HDRO) provides targeted exposure to the hydrogen and fuel cell industry, a critical segment of the clean energy transition. Hydrogen is increasingly viewed as a viable alternative to fossil fuels, particularly for heavy industries and long-haul transportation where electrification is challenging. Governments worldwide are investing in hydrogen infrastructure, and companies in this space are developing innovative solutions for production, storage, and distribution. HDRO offers investors a way to participate in this high-growth potential sector, which is still in its early stages but holds promise for significant expansion as global decarbonization efforts intensify.
Alternative Comparison
Compared to broader clean energy ETFs like ICLN or QCLN, HDRO offers a more concentrated focus on hydrogen and fuel cell technologies. While ICLN provides diversified exposure to renewable energy (including solar, wind, and hydro), HDRO is specifically tailored to investors bullish on hydrogen's role in the energy transition. Another peer, PBW, includes hydrogen companies but also covers a wider range of clean tech innovations. HDRO's specialized approach may appeal to those seeking pure-play exposure to hydrogen, though it comes with higher sector-specific risks.
Issuer Overview
Defiance ETFs is an issuer known for its thematic and next-generation investment products. The firm focuses on innovative sectors such as quantum computing, clean energy, and disruptive technologies. Defiance aims to provide investors with access to cutting-edge industries through ETFs that track specialized indices. HDRO is part of their suite of thematic funds designed to capitalize on emerging trends in the global economy.
Conclusion
HDRO is a thematic ETF designed for investors who believe in the long-term potential of hydrogen as a clean energy solution. While the fund offers unique exposure to an innovative sector, it also carries higher risks due to its niche focus and dependence on the adoption of hydrogen technologies. Investors should consider their risk tolerance and investment horizon before adding HDRO to their portfolios, as the hydrogen industry is still in its developmental phase.
Boost Your Returns with SectorSurfer
Award-winning investment strategy automation