Global X Hydrogen ETF surges 261% yearly but trades at high premium amid risks, rated HOLD

The Global X Hydrogen ETF (HYDR) has delivered a strong 261% annual return and 64% gain in the past month, driven by rising AI-driven energy demand and growth in the Asia-Pacific hydrogen market. However, the ETF trades at a steep premium with negative earnings and a high price-to-book ratio, and it is highly concentrated with 80% of assets in its top 10 holdings. It also faces sector supply-demand imbalances and geopolitical risks. Due to its expensive valuation and recent rapid rally, the ETF is rated HOLD despite promising long-term growth themes in hydrogen energy.