Quikro has launched the first ETF in Europe offering exposure to digital infrastructure and connectivity industries with the help of white-label ETF platform HANetf.
The Digital Infrastructure and Connectivity UCITS ETF (DIGI) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.69%.
Tracking the Tematica BITA Digital Infrastructure and Connectivity index, DIGI is comprised of companies that are exposed to the growing digital infrastructure circle of expanding users, data, applications and bandwidth.
Global internet traffic, the number of users, the number of devices per user and the amount of data per device are all forecasted to significantly increase over the next two years, according to figures from CISCO.
Quikro has designed the ETF in a bid to capture the benefits of the expected transformations in economic, cultural and social needs as people increasingly digitise how they live, work and communicate.
DIGI focuses on six sub-themes that follow the journey of data as it travels from storage to end user. These include data centres, digital connectivity, data networks, digital transformation, digital processing and digital services and intellectual property.
Its benchmark consists of 80 global stocks that have been selected with the assistance of Tematica Research and BITA.
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Omar ElKheshen, CEO of Quikro, commented: “The roll-out of 5G, Cloud, IoT, VR, and other disruptive technologies, in addition to permanent lifestyle changes linked to Covid-19, will continue to accelerate the trend towards further digitisation and virtual communication.
“With that arises a growing and insatiable need for digital infrastructure to support everyday digital activities and the immense amount of data flowing behind them.”
Nik Bienkowski (pictured), co-CEO of HANetf, added: “DIGI focuses on some of the most exciting and transformational themes in the world today and allows investors to invest in this long-term megatrend of exponential growth in traffic using digital infrastructure.”
DIGI is the third product HANetf has assisted in launched in the last three months having also been involved in the launch of the Almalia Sanlam Active Shariah Global Equity UCITS ETF (AMAL) and Alerian Midstream Energy Dividend UCITS ETF (MMLP).