A strong management team and sound investment process underpin Direxion Hydrogen ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The team managing the passive strategy drives the strategy's Above Average People Pillar rating. The strategy's sensible investment philosophy earns an Above Average Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy is part of a first-rate parent that has overall reasonable fees and minimal portfolio manager turnover. These attributes support its Above Average Parent Pillar rating.

Analyst Rating

C3.ai

Bloom Energy

Ballard Power Systems

Plug Power

Linde

Air Products and Chemicals

FuelCell Energy

VanEck Vectors Intermediate Muni ETF

Hyster-Yale Materials Handling

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Direxion Hydrogen ETF earns an Above Average Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 100% also strengthens the process. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 50%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results, before fees and expenses, that track the Indxx Hydrogen Economy Index.  The fund, under normal circumstances, invests at least 80% of its assets in the securities that comprise the index or investments with economic characteristics similar to the securities included in the index. The index track the performance of companies that provide goods and/or services related to the Hydrogen Industry, including hydrogen generation and storage, fuel cells, hydrogen stations, and and hydrogen-based vehicles. It is non-diversified. 

 The portfolio is overweight in industrials by 40.3 percentage points in terms of assets compared with the category average, and its financial services allocation is similar to the category. The sectors with low exposure compared to category peers are basic materials and consumer defensive, underweight the average by 23.9 and 3.2 percentage points of assets, respectively. The strategy owns 31 securities and is quite concentrated. In particular, 62.4% of the portfolio's assets are housed within the top 10 holdings, compared to the category average of 23.9%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 45% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

Direxion’s team earns an Above Average People Pillar rating. The most substantial contributor to the rating is the firm's five-year retention rate of 100%. The stability of the management team also influences the rating. Specifically, the fund has not seen a manager change in the last three years. Lastly, the rating is limited by the parent firm's five-year success ratio of 25%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

People

Direxion remains well-positioned in an increasingly competitive industry, earning it an Above Average Parent Pillar rating. Direxion stands out from a cost perspective for open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors' returns. On average, fees for the firm's funds are in the second-lowest quintile of category peers. Direxion has brought continuity to its product shelf, with low portfolio management turnover compared with peer firms over the past five years.

Parent

Direxion Hydrogen ETF

HJEN tracks a modified market-cap-weighted index of global companies involved in businesses related to the hydrogen industry.

Global X Hydrogen ETF

New Linde PLC

Investors may want to pay close attention to hydrogen stocks. All as the U.S. fights to make hydrogen happen.

Wall Street Favorites: 7 Hydrogen Stocks with Strong Buy Ratings for April 2024

Just days ago, the Department of Energy announced a $750 million investment in 52 U.S. projects that will cut the cost of clean hydrogen and “reinforce America's global leadership in the growing clean hydrogen industry,” as noted by Energy.gov. All of which should be a sizable catalyst for hydrogen stocks.

From Six Figures to Seven: 3 Hydrogen Stocks Set to Make Millionaires

Not to beat a dead horse, but I'm a big fan of some of the top hydrogen stocks to buy.  As I said a few days ago, “all seven of the Department of Energy's hydrogen hubs are asking the Treasury Department to loosen the rules, too.

The Top 3 Hydrogen Stocks to Buy in March 2024

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Investors who piled into clean energy themes the last few years are experiencing some performance pain this year, as we appear to be experiencing a detour on the road to the clean energy transition. Related themes have been hard hit this year due to a confluence of events.

A Detour on the Road to the Clean Energy Transition

Hydrogen stocks could get explosive. In fact, with the market valued at $158.8 billion in 2023, it could be worth nearly $260 billion by 2028, according to  Markets and Markets.

3 Millionaire-Maker Hydrogen Stocks to Buy in February 2024

New Fortress Energy

There could be substantial opportunities for undervalued hydrogen stocks. That is, if President Biden loosens the proposed rules on hydrogen tax credits, making them far friendlier to producers, as E&E News notes.

The 3 Most Undervalued Hydrogen Stocks to Buy in January

Chart Industries

With the world attempting to go green, the Biden Administration just announced a $7 billion investment in hydrogen hubs in the U.S. Deployment of low-cost, clean hydrogen is crucial to meeting Biden's climate goals. All of which should be a powerful catalyst for related hydrogen stocks.

The 3 Best Hydrogen Stocks to Buy in December

Hydrogen stocks are hot and demand is only expected to increase. As noted by The Wall Street Journal a recent McKinsey report predicts 5x rise in hydrogen demand by 2050 if climate change limited to 1.5°C.

Hydrogen Stocks to Buy Now to Turn $2,500 Into $5,000

With the uptick in the global alternative energy sector, hydrogen stocks have been thrust into prominence. With the sector flourishing rapidly, there's no denying the potential for high-return alternative energy stocks.

Buy Alert: 3 Hydrogen Stocks Nearing Super Attractive Entry Points

The push for cleaner energy solutions has put hydrogen in the spotlight. While the journey might be fraught with challenges, the long-term potential of this element as a game-changer in the energy sector is hard to ignore.

Worried About Tesla's Margins? Try Hydrogen ETFs

As the U.S. Government puts its weight behind clean energy projects, investors have the opportunity to tap into clean energy ETFs.

Government Assistance on U.S. Clean Energy: ETFs to Win

Hydrogen adoption is expected to increase this century, particularly in industries resistant to electrification, as part of efforts to achieve net zero emissions by 2050. The Direxion Hydrogen ETF offers investment opportunities in the hydrogen economy, with a portfolio of 30 pure-play stocks involved in hydrogen production, storage, fuel cell and battery systems, and more. Despite being less popular than the HYDR, we feel HJEN is the more compelling bet of the two.

HJEN: Not Yet A Buy, But Our Preferred Choice To Play The Hydrogen Wave

Aside from other green energy stocks, artificial intelligence, and machine learning, hydrogen stocks are some of the most exciting opportunities on the market. In fact, here are seven of the best hydrogen stocks you may want to buy now.

Why These 7 Stocks Are the Best Ways to Play Hydrogen Right Now

Fusion Fuel Green

Hydrogen is a clean form of renewable energy that continues to draw significant interest from investors. According to Morgan Stanley (NYSE: MS ), the hydrogen economy could be an $11 trillion market between now and 2030.

3 Hydrogen Stocks to Make Your ‘Get Rich' Dreams Come True

As investors think about an all-of-the-above approach to renewable energy, it's time for hydrogen to enter the conversation. More specifically, it may be time to look at green hydrogen stocks.

Green Hydrogen: 3 Hydrogen Stocks to Buy and Hold for Decades

The hydrogen story has come under pressure, but don't write the industry off just yet. Instead, consider picking up some of the top hydrogen stocks with massive catalysts.

7 Hydrogen Stocks That Could Skyrocket in the Next 12 Months

With the world going green, the hydrogen story could get explosive. In fact, according to Vantage Market Research, the market could grow from $374.17 million in 2021 to more than $8.7 billion by 2028.

The 3 Hydrogen Stocks to Watch as Clean Energy Demand Soars

Hydrogen could be one of the most explosive opportunities. After all, it emits no greenhouse gas, and the only waste product is vapor.

7 Hydrogen Stocks Sitting in the Sweet Spot

With its aggressive plans to reach net-zero, China is increasingly looking at hydrogen to power various methods of transportation. Most recently, it put its first hydrogen-powered ship in service.

China's First Hydrogen-Powered Ship Hints at Growth Potential

Like most auto manufacturers, Japanese automaker Toyota is bolstering its lineup of electric vehicles (EVs) amid a global push to net zero, but that doesn't mean that hydrogen-powered vehicles are on the back burner, according to the automaker's CEO.

Despite Rise in EVs, Toyota CEO Also Prioritizes Hydrogen

The rapid growth of green energy, and, by extension, hydrogen stocks have always seemed to be a case of if, not when. And with the recent passage of the Inflation Reduction Act, the entire hydrogen sector just got a big boost.

3 Hydrogen Stocks Fueling the Clean Energy Revolution

HJEN provides exposure to companies involved in the hydrogen economy that includes its production, distribution, storage and use as an energy source. This ETF has exposure to 30 companies in 5 hydrogen-related sub-themes, which collectively lead the way towards net-zero emissions.

HJEN: A Subtle Way To Invest In The Future Through Hydrogen

The hydrogen story could get explosive, creating a solid list of the best hydrogen stocks to buy. In fact, according to the Hydrogen Council, it's central to reaching net zero emissions and limiting global warming to 1.5 degrees Celsius.

What are the Best Hydrogen Stocks to Buy Now? Our 3 Top Picks.

Hydrogen stocks could be some of the most exciting opportunities on the market. According to the Hydrogen Council, it's central to reaching net zero emissions and limiting global warming to 1.5 degrees Celsius.

3 Hydrogen Stocks to Buy Now or You'll be Kicking Yourself Later

ProShares Ultra Nasdaq Biotechnology

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These are some of the best ETFs to buy and hold heading into New Year 2023. Rather than being completely tied to the ebb and flow of single-stock ideas, you can gain access to a broad number of similar opportunities at a low price.

News for Direxion Hydrogen ETF ETF (HJEN)