Industry Updates

HANetf terminates iClima smart energy ETF

‘Impracticable’ to continue operating the ETF

Theo Andrew

a group of wind turbines

HANetf is set to shut the iClima smart energy ETF after its low level of assets under management (AUM) meant the strategy was “impracticable and inadvisable” to operate.

The iClima Smart Energy UCITS ETF (DGEN), which launched 18 months ago and houses $4m in AUM, will close on 16 January 2023, the group said in a shareholder notice.

DGEN will cease trading across six stock exchanges from 3 January, with investors given until 9 January to redeem their shares.

“The board has considered the viability of the fund and taking into account the current levels of assets under management and the best interests of the shareholders has determined that it is impracticable and inadvisable for the fund to continue to operate,” it said.

Having launched in June 2021 under the name the iClima Distributed Renewable Energy UCITS ETF, DGEN was renamed to the iClima Smart Energy UCITS ETF (DGEN) in December 2021.

DGEN, which has a total expense ratio of 0.69%, tracks the iClima Distributed Renewable Energy index run by Solactive and is 27.6% down since inception.

The index aims to provide exposure to smaller renewable-based distributed power sources as well as energy storage solutions, smart grids, measurement instruments and building energy management.

The white-label issuer has two other ETFs that focus on alternative energy including the $11m Solar Energy UCITS ETF (TANN) and the $4.9m HANetf S&P Global Clean Energy Select HANzero UCITS ETF (ZERO).

ETF closures have impacted several other issuers over the past few months, with the likes of JP Morgan Asset Management, Goldman Sachs Asset Management, HSBC Asset Management and Tabula all shutting ETFs recently.

Last month, UniCredit closed its last two ETFs as it bowed out of the European ETF market.

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