- The US is the largest ETF market and seen as the most innovative and liquid. [1]
- MIFID II regulations have prevented European investors from buying US-domiciled ETFs.
- US issuers have used HANetf as a time- and cost-efficient solution for bringing versions of their successful 40 Act ETFs to European investors.
- Part of HANetf’s mission is bringing these exciting new ETF strategies to European investors.
August 2022, London
HANetf, Europe’s first full service ‘white label’ ETP platform, has so far turned 10 US funds into equivalent UCITS ETFs in Europe.[2] HANetf’s platform provides a one stop shop for issuing, managing, and distributing ETFs in Europe. Previously, US issuers would have had to establish full infrastructure and distribution in Europe in order to offer clients a UCITS offering.[3] This can typically cost multiple millions and several years to establish even before an ETF is issued. HANetf can issue a brand-new ETF in as little as 10 weeks. [4]
Since the introduction of MIFID II regulations in 2018, European investors have been unable to buy US-domiciled ETFs. As a result, European investors have experienced restricted access to new ETF themes and emerging strategies that were already highly successful in the US markets.[5] Many of these funds are market firsts, and bringing US funds to Europe through the UCITS model in a timely and cost-efficient manner is highly attractive.
However, we believe HANetf has made it very straightforward for North American issuers to take their intellectual property and investment strategy and enter the European markets in a timely and cost-efficient manner.
HANetf’s first ever fund was an existing US ETF, EMQQ Emerging Markets Internet & Ecommerce UCITS ETF (EMQQ), and there have been many more since. We have turned roughly 10 US-domiciled funds into UCITS ETFs and listed across Europe’s largest exchanges, including the London Stock Exchange, Deutsche Borse and Borsa Italiana. The UCITS wrapper is also increasingly popular in Latin America, leading HANetf to list 20 of its products in Mexico City.
Hector McNeil, co-CEO and co-Founder HANetf comments:
“The US is seen as leading the world in terms of ETF innovation and liquidity, being years ahead of other ETF markets such as Europe and Asia. We believe this can prove frustrating for European investors, following the introduction of MIFID II rules in 2018, as these rules effectively banned European investors from purchasing US-listed ETFs. As a result, a European investor might read about an exciting new thematic ETF strategy being listed on the NYSE – but due to current regulations, they are unable to invest, unless a UCITS-compliant version is also listed. At HANetf we will continue to work with leading asset managers in the US to create UCITS versions of what we believe are the most innovative and unique strategies.
Equally, US-based issuers would be frustrated when European investors contacted them to buy a UCITS version of their fund and were unable to satisfy the request in a timely or cost-efficient manner. HANetf provides a one stop shop solution to issuers and investors alike by taking the sought-after IP and issuing a European UCITS version in as little as 10 weeks.”
To find out more, read the full article here.
Below is a table of HANetf UCITS ETFs that have US & North American sister funds:
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.