A Tale of Two Themes: Green Hydrogen and Travel | ETF Trends

Thematic strategies allow investors to access targeted segments of the broader marketplace, providing opportunities to focus on growing trends and cater their portfolios to areas of conviction.

In the upcoming webcast, A Tale of Two Themes: Green Hydrogen and Travel, Sylvia Jablonski, CEO and CIO of Defiance ETFs; and Paul Dellaquila, president of Defiance ETFs, will explore the travel industry and green hydrogen sector to help financial advisors enhance their client portfolios with potential growth opportunities ahead.

Specifically, the Defiance Hotels, Airlines, and Cruise ETF (CRUZ) can give retail and institutional investors exposure to a cross-section of travel-related companies believed to have significant growth potential. It seeks to track the performance before fees and expenses of the BlueStar Global Hotels, Airlines, and Cruises Index, a rules-based weighted index of companies primarily engaged in the passenger airline, hotel, and cruise industries.

The BlueStar Global Hotels, Airlines, and Cruises Index is a rules-based index that consists of globally-listed stocks of companies that derive at least 50% of their revenues from the passenger airline, hotel and resort, or cruise industries as determined by MV Index Solutions.

“Not all travel stocks are the same, and analysts are advising investors to choose carefully. Companies that used the last two years to cut expenses, rethink their offerings, increase agility, and undergo a digital transformation could succeed while others drown,” according to Defiance ETs. “All this uncertainty could make a travel ETF more attractive for investors who believe in the long-term future of the travel sector but aren’t sure which may be the most profitable travel stocks to invest in.”

Additionally, the Defiance Next Gen H2 Fund (HDRO) gives investors exposure to companies involved in the development of hydrogen-based energy sources and fuel technologies. HDRO’s underlying index, the BlueStar Hydrogen & NextGen Fuel Cell Index, can include up to a 15% weight in non-pure play companies, though it does not include vehicle manufacturers. To be eligible, companies must meet size and liquidity requirements that can be drawn from developed and developing markets.

“Because selecting the best hydrogen stocks to invest in is an almost impossible task, consider investing in a hydrogen ETF such as HDRO by Defiance ETFs. This will enable you to diversify your investment capital by investing in a focused portfolio of companies poised to capitalize on potential future returns arising from innovations in the hydrogen space,” according to Defiance ETFs.

Financial advisors who are interested in learning more about the travel and hydrogen sector can register for the Friday, December 16 webcast here.