HANetf is shutting its cleaner living ESG ETF after it failed to gain any significant assets under management (AUM).

In a shareholder notice, the white-label ETF issuer said Cleaner Living ESG-S UCITS ETF (DTOX) would be delisted from the London Stock Exchange on 19 September.

DTOX, which tracks the Tematica Bita Cleaner Living Sustainability Screened index, currently has $701,000 AUM.

The ETF was launched less than a year ago in partnership with Quikro with a total expense ratio (TER) of 0.59%.

It is the European version of the Amplify Cleaner Living ETF that launched in the US in June 2021, which tracks a non-sustainability version of the same index, the Tematica Bita Cleaner Living index. 

The US version has also struggled to gain traction and currently houses $869,000 AUM.

The shareholder notice said: “The board has considered the viability of the fund and taking into account the current levels of AUM and the best interests of the shareholders has determined that it is impracticable and inadvisable for the fund to continue to operate.

“Under the instrument of incorporation of the ICAV, the board may terminate a sub-fund if the net asset value of the relevant sub-fund is less than the minimum fund size.”

HANetf added the proceeds of the sale of the ETF’s assets will be returned to shareholders by 11 October.

Commenting on the news, Hector McNeil, co-founder and co-CEO of HANetf, said: “Like all issuers, HANetf continually reviews its line up and that during a recent review, it was determined to shut this fund down which was also below the minimum threshold.

“Low AUM does not mean a fund will necessarily close. It is a case-by-case basis”

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