HANetf launches free to licence; innovative ETF model portfolios; for investors seeking thematic; crypto and ESG portfolios

  • HANetf has teamed with Algo-Chain to launch six ETF model portfolios.
  • The ETF model portfolios include a Balanced portfolio a Growth portfolio an Adventurous portfolio an ESG Growth portfolio a Thematic portfolio and a Crypto portfolio.
  • The ETF model portfolios make use of HANetf’s wide range of innovative thematic ETFs and Crypto ETPs showing investors how they can potentially best use the products.
  • The ETF models also include third party issuers ETFs where appropriate.
  • The model portfolios use state of the art technology screens alongside a human overlay to determine economic cycles and risk appetite in the markets and to capture the risk premia across various asset classes.
  • Financial advisers and asset managers will be able to licence the ETF model portfolios for free.

February 2023 London

HANetf Europe’s first independent white-label ETF and ETC platform and leading provider of thematic ETFs and crypto and commodity ETCs is pleased to announce that it has launched six highly innovative model portfolios. [1]

The model portfolios developed in partnership with Algo-Chain use state of the art technology to screen extensive market macro-economic and ETF data sets from around the world. This is used alongside a human overlay to determine economic cycles and risk appetite in the markets and to capture the risk premia across various asset classes. The portfolios will be rebalanced every quarter.

The target audience for the model portfolios are financial advisers wealth managers private banks execution only brokers robo advisers and any other money managers who want to offer ETF portfolios to their end clients. Model portfolios have become a significant part of the US ETF market ecosystem and HANetf believes the same will happen in Europe.

The model portfolios are as follows:

The Balanced Growth and Adventurous model portfolios use ETFs to provide exposure to equities fixed income commodities and alternative assets. Each portfolio has a different asset allocation giving it a different risk level target volatility and target maximum drawdown shown in the table below. Third party ETFs are used where appropriate to supplement the highly innovative range of HANetf ETFs. It is the norm that most ETF providers who offer model portfolios tend to only use in-house products but HANetf believes a more open selection model is optimal.

The ESG Growth Portfolio is also a multi-asset portfolio but investing in Impact Investing and ESG Themed ETFs. Impact Investing seeks to provide capital to address the world’s most pressing challenges in sectors such as renewable energy and other companies providing climate change solutions. The portfolio has around 12% exposure to iClima Global Decarbonisation Enablers UCITS ETF (CLMA) and 6% exposure to HANetf S&P Global Clean Energy Select HANzero™ UCITS ETF (ZERO). ZERO is uniquely a carbon neutral investment using carbon offsets to neutralise all emissions associated with the portfolio’s holdings.

The Future Trends Themed Equity Model Portfolio seeks to invest in ETFs that have exposure to the latest megatrends and themes. It comprises assets in equities across different regions and is run on a higher risk level than the classic portfolios.

Investors can access a wide range of disruptive themes. Among its holdings are Electric Vehicle Charging Infrastructure UCITS ETF (ELEC) Sprott Global Uranium Miners UCITS ETF (URNM) and Grayscale Future of Finance UCITS ETF (GFOF). By taking a thematic approach the portfolio does not allocate based on traditional geographic or sector categories.

With thematic investing increasingly popular HANetf has become the most extensive thematic ETF issuer in Europe. The model portfolio shows how these ETFs can be incorporated into a thematic focused portfolio.

The Digital Assets and Crypto Model Portfolio seeks to invest in ETPs that give exposure to some of the largest crypto currencies and an ETF with a pure play exposure to the blockchain and digital assets sector. The individual crypto ETPs follow market-cap weighted approach with a maximum weight at rebalance of 20%.

The portfolio also holds a 20% position in a Digital Assets and Blockchain Equity ETF for diversification purposes by providing exposure to companies that have business operations in the field of blockchain technologies including cryptocurrency mining blockchain technology or cryptocurrency trading and exchanges.

The portfolio provides exposure to digital assets and cryptocurrencies using both ETCs and ETFs allowing the investor access through a robust regulated wrapper but please note given exposure to crypto currencies the portfolio is running at a high-risk level.

The model portfolios are available here: Access Algo-Chain’s leading edge Model Portfolios

Hector McNeil co-CEO and co-Founder of HANetf comments:

“We are thrilled to introduce this new range of model portfolios. At HANetf over the past four years we have issued a range of innovative and market-first ETFs and ETCs. With these model portfolios we are providing a way for investors to incorporate these ETFs and ETCs into a model of an investible portfolio. While the Themed Equity Model Portfolio and Crypto Model Portfolio include just HANetf products our ESG and balanced model portfolios use other providers ETFs for &lsquocheap beta’ building blocks for their “core” holdings. HANetf’s more specialist and innovative products are then used as satellite holdings.

I have long been of the opinion that to catch up with the US ETF market there needs to be more provision of solutions that help investors construct intelligent ETF portfolios taking advantage of the lower costs of ETFs versus mutual funds and other wrappers. There is a gap between investors assessing the thousands of ETFs available and coherently building a portfolio. HANetf is also leading the way by using third party issuer ETFs where appropriate and not just using proprietary products. In the US we have seen a huge growth in ETF model portfolios and Europe is lagging. Offering free licences to financial advisers and asset managers who want to use these models is extremely powerful in further democratising using ETFs. The world of investment is increasingly moving towards democratisation and removal of barriers – the model portfolios are in that vein being off-the-shelf solutions for investors.”

Please remember that the value of your investment may go down as well as up and past performance is no indication of future performance. When you trade ETFs your capital is at risk.