Thematic ETF specialist HANetf has launched a range of six model portfolios, spanning ESG, thematic funds and digital assets, and more conventional strategies.
The six portfolios are Balanced Portfolio, Growth Portfolio, Adventurous Portfolio, ESG Growth Portfolio, Future Trends Themed Equity Portfolio and Digital Assets and Crypto ETP (exchange-traded products) Portfolio.
HANetf said growth in the US ETF market warrants more provision of strategies for European investors.
The Balanced, Growth and Adventurous model portfolios use ETFs to provide exposure to equities, fixed income, commodities and alternative assets.
The ESG Growth Portfolio is a multi-asset portfolio focusing on impact investing and ESG-themed ETFs.
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).
The Future Trends Themed Equity Model Portfolio seeks to invest in ETFs exposed 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.
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). Using a thematic approach, the portfolio does not allocate based on traditional geographic or sector categories.
The Digital Assets and Crypto Model Portfolio seeks to invest in ETPs that give exposure to some of the largest cryptocurrencies and an ETF with pure-play exposure to the blockchain and digital assets sector. The individual crypto ETPs follow a market-cap-weighted approach with a maximum weight at rebalance of 20%.
The strategies have been developed in partnership with Algo-Chain.
On the back of the launch, HANetf claimed to be the most extensive thematic ETF issuer in Europe, but co-CEO Hector McNeil said more diverse strategies are needed to bolster the popularity of ETFs on the continent.
“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,” he said.
Model portfolios have become a significant part of the US ETF market ecosystem, and HANetf believes the same will happen in Europe.
“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 [that] 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,” McNeil added.
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