Industry Updates

HANetf emerging markets internet ETF goes Article 8 on index change

China capping limit also introduced

Lauren Gibbons

Hector McNeil new

HANetf emerging markets internet ETF has been classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR) after the index was changed to include an ESG screen.

The EMQQ Emerging Markets Internet & Ecommerce UCITS ETF (EMQQ) will go from tracking the EMQQ Emerging Markets Internet & Ecommerce index to the EMQQ Emerging Markets ESG-Screened index.

As a result, the name of the ETF will change to EMQQ Emerging Markets Internet UCITS ETF under the same ticker.

The ESG screen excludes companies that violate the UN Global Compact principles, alongside excluding companies involved in controversial weapons, tobacco and thermal coal.

In addition, EMQQ has also introduced a 45% capping limit to Chinese equities, and a 10% limit to South Korean equities for diversification benefits.

Hector McNeil (pictured), co-founder and co-CEO at HANetf, said: “At HANetf, we are strong believers in providing new and innovative ESG solutions to investors.

“This is always an ongoing process, whereby we work with our partners to maintain and improve the ESG credentials of our ETFs – in this instance, we took EMQQ – a fund that was already on our platform – and updated its structure to achieve SFDR Article 8 classification, while also introducing new country weightings.”

EMQQ was launched in 2018 and has amassed $145m in assets under management since its inception.

HANetf also tweaked the ESG screen of its INQQ India Internet UCITS ETF (INQQ) to align it with its existing Article 8 ETFs.

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