High-voltage direct current (HVDC) is becoming a critical enabler of the energy transition, linking offshore wind farms, cross-border grids, and long-distance renewable projects. While no ETF directly tracks the HVDC market, investors can gain exposure through listed suppliers such as Siemens Energy, Hitachi, GE Vernova, Prysmian, Nexans, and NKT, or indirectly via infrastructure and clean energy ETFs. This article explores the key players, ETF options, and strategic considerations for investors looking to tap into HVDC growth.
Quick Summary
- No ETF directly tracks HVDC – investors gain exposure through infrastructure and utilities ETFs.
- Listed HVDC suppliers include Siemens Energy (ETR: ENR), Hitachi (TYO: 6501), GE Vernova (NYSE: GE), Prysmian (BIT: PRY), Nexans (EPA: NEX), NKT (CPH: NKT).
- ETFs with indirect exposure: iShares Global Infrastructure (NASDAQ: IGF), SPDR S&P Global Infrastructure (NYSEARCA: GII).
- HVDC growth is driven by offshore wind, cross-border interconnectors, and renewable integration.
Why HVDC is Becoming Investable
The HVDC market underpins the energy transition:
- Enables long-distance renewable transmission.
- Provides cross-border grid stability.
- Supports offshore wind buildout.
While projects are not directly investable, listed suppliers and infrastructure ETFs give exposure.
ETFs with HVDC Exposure
Although there is no pure HVDC ETF, several global infrastructure ETFs include companies active in HVDC supply chains:
| ETF Name | Ticker | Exposure Type |
|---|---|---|
| iShares Global Infrastructure | NASDAQ: IGF | Utilities & grid operators (e.g., National Grid, Enel) |
| SPDR S&P Global Infrastructure | NYSEARCA: GII | Infrastructure developers and contractors |
| iShares Global Clean Energy | NASDAQ: ICLN | Renewable developers that rely on HVDC interconnectors |
| First Trust Nasdaq Clean Edge Smart Grid | NASDAQ: GRID | Grid technology companies, incl. Siemens, ABB |
Note: Exposure is indirect, as ETFs track broader infrastructure or clean energy, not HVDC alone.
HVDC Supplier Stocks
Siemens Energy (ETR: ENR)
- HVDC converter stations (VSC technology).
- Projects: Ultranet, Soo Green, North Sea Link.
Hitachi (TYO: 6501)
- Through Hitachi Energy, leading global supplier of LCC and VSC systems.
- Projects: SunZia, ADNOC Offshore HVDC, Pugalur.
GE Vernova (NYSE: GE)
- Offshore HVDC and interconnector systems.
- Projects: IFA2, UK–France.
ABB (SWX: ABBN)
- Legacy HVDC pioneer, now focused on grid automation and controls.
Prysmian (BIT: PRY)
- World leader in submarine HVDC cables.
- Projects: North Sea Link, Soo Green.
Nexans (EPA: NEX)
- European cable maker, active in NordLink, Greenlink.
NKT (CPH: NKT)
- Danish cable specialist, pure-play exposure to Europe’s HVDC expansion.
Investment Considerations
- Growth tailwinds: Offshore wind, interconnectors, decarbonization mandates.
- ETFs: Diversified but dilute HVDC exposure.
- Suppliers: Higher sensitivity to HVDC orderbooks but also to cost inflation and project risk.
- Regional mix: Europe leads in subsea interconnectors; the US is scaling up with Soo Green and SunZia.
FAQ
Q: Is there an HVDC-specific ETF?
No. Investors can only access HVDC indirectly via infrastructure or clean energy ETFs.
Q: Which ETFs have HVDC exposure?
iShares Global Infrastructure (IGF), SPDR Global Infrastructure (GII), and First Trust Smart Grid (GRID) include companies involved in HVDC.
Q: Which are the top HVDC suppliers?
Siemens Energy, Hitachi Energy, GE Vernova, Prysmian, Nexans, and NKT are the main listed suppliers.
Q: Is it better to invest in ETFs or individual HVDC suppliers?
ETFs provide diversified exposure but dilute the HVDC theme. Suppliers give more direct upside but carry execution and project risk.