HANetf, a European white-label ETF platform, has partnered with GinsGlobal Index Funds, a provider of index-linked investment products, to launch two new global equity ETFs that provide exposure to the themes of innovative technology and cloud computing.
The new ETFs provide exposure to a range of innovative technology themes.
The ETFs, which will debut on London Stock Exchange on 10 October 2018, are referenced to indices developed and calculated by Solactive.
The HAN-GINS Global Innovative Technologies ETF tracks the Solactive Innovative Technologies Index, enabling investors to gain exposure, via a single trade, to companies involved in innovative and disruptive trends across a broad range of industries.
The index consists of companies operating within the sub-themes of robotics & automation, cloud computing & big data, cyber security, future cars, genomics, social media, augmented & virtual reality, and blockchain industries.
Solactive leverages the FactSet Revere Business Industry Classification System to assign stocks to the various themes based on revenue and asset exposure. Companies can be based in developed or emerging markets but must have a market capitalisation in excess of $100m
The investment process selects the 15 largest firms by market cap within each of the above sub-themes. All eligible stocks within a sub-theme are selected if the total firm count falls below 15. Each sub-theme is equally weighted; however, sub-themes with fewer than 10 stocks have their weights reduced and redistributed amongst the other sub-themes. Finally, the constituents in each sub-theme are weighted equally.
The index is reconstituted and rebalanced on a semi-annual basis.
The fund is available to trade in US dollars (Ticker: ITEK LN) or pound sterling (ITEP LN).
The HAN-GINS Cloud Technology UCITS ETF tracks the Solactive Cloud Technology Index, consisting of companies globally operating in the field of cloud-based software and services.
The index includes the 50 stocks that are most closely related to the theme of cloud computing. Again, companies may come from developed or emerging markets but must have a market capitalisation in excess of $100m
Constituent selection is based on Solactive’s proprietary ARTISTM (Algorithmic Theme Identification System) technology, a software tool that utilizes natural language processing to identify thematic exposures in companies using unconventional data sources. Stocks are weighted by free float market cap with a single issuer cap of 4%. Reconstitution and rebalancing occur semi-annually.
The fund is also available to trade in US dollars (Ticker: SKYY LN) or pound sterling (SKYP LN).
Both funds come with a total expense ratio (TER) of 0.75%.
With these launches, GinsGlobal becomes the second US asset manager, following Big Tree Capital’s launch of the EMQQ Emerging Market Internet and Ecommerce UCITS ETF (EMQQ LN) earlier this month, to launch a UCITS ETF through the HANetf platform.
Anthony Ginsberg, Founder and Managing Director of GinsGlobal Index Funds, commented, “We’re delighted to be partnering with the HANetf team on our first European ETF offerings. We believe HANetf’s Irish platform is an attractive proposition for many global investors as they have made our transition from mutual funds to ETFs as smooth as possible.
“Our unique theme-based ETFs focusing on cloud computing and innovative technologies will provide European investors with easy low-cost access to dynamic global companies representing the Fourth Industrial Revolution…Investors benefit from Solactive’s broad-based indices – including household names from the US, China and Europe, plus many other ground-breaking companies.”
Nik Bienkowski, co-Founder and co-CEO at HANetf, added, “GinsGlobal has successful and well-established institutional funds in the US, and their team identified the opportunity to future-proof their business and extend their distribution via a European ETF offering.
“These launches demonstrate that the barriers to entry to the European ETF markets have been totally dismantled. No longer do asset managers need a European footprint or their own ETF infrastructure to benefit from the disruptive distribution power of ETFs. We are delighted to have worked with GinsGlobal to bring these exciting new propositions to European investors.”