Industry Updates

HANetf to shut frontier markets eCommerce ETF

Fourth ETF closure by the white label provider this year

Theo Andrew

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HANetf is closing its frontier markets eCommerce ETF due to low assets under management (AUM).

The FMQQ Next Frontier Internet & Ecommerce ESG-S UCITS ETF (FMQQ) will shut on 13 November after amassing $1.5m in assets since its launch in January 2022 with a total expense ratio (TER) of 0.86%.

It is the white-label issuer’s fourth ETF closure this year, all due to failing to gather enough assets since launch.

“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,” the board said in a note to shareholders.

Despite returning 10.6% year to date, FMQQ was 46.4% down since inception.

FMQQ’s emerging markets equivalent, the EMQQ Emerging Markets Internet & Ecommerce UCITS ETF (EMQQ), launched in October 2018 and currently has $182m AUM.

While HANetf has shut several products this year, it has also launched three new ETFs including Future of Defence UCITS ETF (NATO), the HANetf European Green Deal ETF (EUGD) and the Sprott Energy Transition Materials UCITS ETF (SETM).

Last month, the firm also agreed a deal with Legal and General Investment Management (LGIM) to merge the $37m L&G US Energy Infrastructure MLP UCITS ETF (MLPX) with the $19.5m Alerian Midstream Energy Dividend UCITS ETF (MMLP).

Hector McNeil, founder and co-CEO of HANetf, told ETF Stream the deal could be the precursor to similar and larger mergers in the future, in which it could potentially merge an ETF issuer’s entire platform with its own.

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