Industry Updates

HANetf merges cloud and megatrend equal-weight ETFs

ITEK will see its AUM rise to $107.8m

Theo Andrew

Tech semiconductor

HANetf is continuing to streamline its product range with the merger of its cloud technology and tech megatrend ETFs.

In a shareholder notice, the white-label ETF issuer said it was proposing to merge the HANS-GINS Cloud Technology Equal Weight UCITS ETF (SKYY) into the HANS-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) on 28 March.

The merge would see SKYY’s $16.7m assets absorbed into ITEK, taking its total assets under management to $107.8m.

It comes as the firm continues to restructure its product range through a series of mergers after several ETFs failed to gather enough demand since launch.

“As an alternative to the closure of the merging fund, the directors wish to present the merger to the shareholders as an opportunity to retain exposure to a portfolio with a similar investment objective,” it said in a note to shareholders.

The two ETFs both launched in October 2018 with a total expense ratio (TER) of 0.59%.

Tracking the Solactive Cloud Technology Equal Weight Equal Weight index, the ETF is designed to offer exposure to three sub-themes in cloud computing; infrastructure as a service (IaaS), Platform-as-a-service (PaaS) and Software-as-a-Service (SaaS).

Meanwhile, ITEK tracks the Solactive Innovative Technology index, offering equal weight exposure to “disruptive global companies”.

Equal weight exposures have risen in popularity over the past 12 months as investors become increasingly concerned about overconcentration among US tech stocks.

It brings the number of ETFs HANetf white labelled for GinsGlobal Index Funds to two, having launched the HANS-GINS Indxx Healthcare Megatrend Equal Weight UCITS ETF (WELL) in April 2019.

Last month, HANetf said it was planning to merge its blockchain equity ETF into its global metaverse ETF.

In January, it said it would be merging five thematic ETFs on low demand and last year entered a commercial agreement with Legal & General Asset Management to merge two US infrastructure ETFs.

Featured in this article

Logo for HANetfLogo for GinsGlobal Index Funds