Thematic Review | Jan – Apr 2022

Chapter 1:News and Updates

Chapter 2: Performance Table and Heatmap

Chapter 3: Performance Analysis

Chapter 4: Looking Ahead – Going Green and Clean?

Chapter 5: Thematic Survey

Chapter 6: Thematic Deep Dive

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Gaining Access to Emerging Markets Without China (FMQQ)

In January HANetf launched the FMQQ Next Frontier Internet & Ecommerce ESG-S UCITS ETF (FMQQ). This ETF is essentially the ex-China version of EMQQ Emerging Markets Internet & Ecommerce UCITS ETF (EMQQ).

Ecommerce has provided strong growth opportunities over recent years particularly in emerging markets. As a result EMQQ has been well received and is one of the most popular ways to gain exposure to emerging markets.

However FMQQ aims to provide similar exposure without China. There are several potential reasons an investor might want exposure to ecommerce in emerging markets without China. Leading ecommerce companies such as Tencent Alibaba or JD.com are all Chinese so naturally China plays an important role in an ecommerce portfolio. But precisely because China occupies 50%+ of the total portfolio by market cap it displaces smaller companies from other countries which could otherwise provide strong growth.

FMQQ is designed to give investors the opportunity to manage their China allocation separately while using FMQQ to benefit from the growth of ecommerce in all other emerging markets. FMQQ is HANetf’s third ecommerce related ETF beginning with Global Online Retail UCITS ETF (IBUY) which listed in 2021.

70% of HANetf’s UCITS ETFs classified as Article 8 or 9

In April our HANS-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) achieved Article 8 SFDR status owing to its objective to have a positive impact on the environment and society.[1] ITEK seeks to provide exposure to the disruptive technology companies in “Industry 4.0” that are changing the world through global megatrends.[2] The ETF provides exposure to eight subthemes.

ITEK’s recent Article 8 status means that the HANetf platform now has 15 UCITS ETFs that are classified as Article 8 and two classified as Article 9 under Sustainable Finance Disclosure Regulation (SFDR).[3] This represents around 70% of HANetf UCITS funds by number of products.[4] This compares to 28% across the EU fund industry according to Morningstar. [5]

Charged up about electric vehicle theme

HANetf also added to its roster of ETFs the Electric Vehicle Charging Infrastructure UCITS ETF (ELEC). ELEC aims to capture the trend of electric vehicle (EV) transition and provide investors with a specific opportunity to gain exposure to the EV charging infrastructure industry.

Government investment in EV infrastructure is being recognised as the most cost-effective way to promote EV adoption. According to the World Bank investing in charging infrastructure is 4-7 times more cost-effective than providing consumer subsidies. [6]

Entering into the Metaverse: METR

The Metaverse denotes a digital world in which everyday experiences such as working socializing gaming and shopping take place. According to Bill Gates in two to three years all virtual meetings could be held in the Metaverse. [7]

With this in mind HANetf and ETC Group together launched Europe’s first Metaverse ETF.[8] The ETC Group Global Metaverse UCITS ETF (METR) provides exposure to companies that have business operations in the field of augmented and virtual reality 3D graphics semiconductors high-speed wireless communications online gaming video streaming blockchain technologies including NFTs and digital land and connected cloud file and data storage. These elements comprise the Metaverse a rising industry in its early growth-phase.

The HANetf thematic range consists of 25 and counting. Here are some of our most recent launches:

To see all our full range of products please visit: HANetf Product List | HANetf