HJEN ETF

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.

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.

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.

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.

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.