Industry Updates

HANetf to merge airline and travel ETFs

JETS will merge into TRYP

Lauren Gibbons

an airplane taking off

HANetf is set to merge its global airline and travel industry ETFs as it continues to reshuffle its range amid low demand.

In a shareholder notice, the white-label ETF issuer said the $3.9m US Global Jets UCITS ETF (JETS) will merge into the $18m Travel UCITS ETF (TRYP).

The merger, subject to shareholder approval, will take place on 19 April after the product struggled to draw in assets since launch.

A shareholder notice said in a statement: “Since its inception in May 2021, the merging fund has failed to gather sufficient assets and an improvement is not expected in the short to medium term.

“Hence, it is no longer viable to maintain the merging fund and a decision has been made to merge the merging fund with the receiving fund.

“The directors of the ICAV believe that a merger with the receiving fund provides investors with a viable alternative.”

HANetf also said it would be closing its EV charging infrastructure ETF due to low assets under management (AUM).

The Electric Vehicle Charging Infrastructure UCITS ETF (ELEC) will close on 29 April after amassing $1.4m since its launch in 2022 with a total expense ratio (TER) of 0.65%.

The consolidations follow the firm’s decision to merge its blockchain equity ETF into its global metaverse ETF last month.

HANetf said the $4.7m ETC Group Digital Assets and Blockchain Equity UCITS ETF (KOIN) will merge into the $8.3m ETC Group Global Metaverse UCITS ETF (METR).

Despite posting year to date returns of 5.85%, JETS is 21.4% down since inception while TRYP has fallen 6.5% since launch.

TRYP tracks the Solactive Travel index which offers exposure to 65 companies active in the travel and tourism sector including companies engaged in the airlines, hotels, cruise lines and online booking business.

HANetf also merged three thematic ETFs into two of its existing products in January, bringing its total ETF consolidations for 2024 to nine.

The reshuffle saw the $7.1m Solar Energy UCITS ETF (TANN) and the $3.4m S&P Global Clean Energy Select HANzero UCITS ETF (ZERO) merge into the iClima Global Decarbonisation Enablers UCITS ETF (CLMA) while the $11.5m Procure Space UCITS ETF (YODA) consolidated into the recently launched Future of Defence UCITS ETF (NATO).

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