In March 2023, HANetf partnered with Algo-Chain to produce a number of model portfolios. The model portfolios use the versatility of ETFs to gain exposure to a wide range of economically priced liquid asset classes. Algo-chain’s state-of-the-art technology screens extensive market, macro-economic and ETF data sets from around the world. This enables them, along with human overlay, to determine economic cycles and risk appetite in the markets and to capture the risk premia across various asset classes.
Below is a summary of their performance between the dates of 15th March and 15th June. Each portfolio was rebalanced on the 15th of June.
The portfolios are free to license.
Adventurous Portfolio – return of 4.76% [1]
With markets back in risk on mode over the period, the best Adventurous Portfolio saw the strongest returns at 4.76%.
Driving the portfolio were the tech holdings. ETC Group Digital Assets and Blockchain Equity UCITS ETF (KOIN) was the best performer in the portfolio, returning 15.38% over the period, contributing 0.41% to the portfolio’s overall return, with its weighting of 2.7%. Another strong performer was HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK), returning 13.06%. ITEK provided strong performance, returning 13.1%. With its 4.7% weighting, this contributed 0.62% to the portfolio’s performance.
Detractors included The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU), owing to the price of gold coming off over the period. The ETC returned -4.68%, detracting 0.23% from the portfolios return.
Growth Portfolio – return of 3.79%
KOIN and ITEK were also the best performing holdings of the Growth Portfolio. But owing to lower weightings of these two ETFs, there contribution to the Growth Portfolio was lower compared to in the Adventurous Portfolio, 0.32% and 0.56%.
The biggest contributor was the Vanguard S&P 500 UCITS ETF, providing 0.9% of the performance, owing to its 12.3% weight. Saturna Al-Kawthar Global Focused Equity UCITS ETF (AMAL) also made a healthy contribution to the return at 0.74%, with a weight of 9.8%.
Future Trends Themed Equity Portfolio – return of 3.93%
The thematic based portfolio saw returns just shy of 4% over the period. ETC Group Global Metaverse UCITS ETF (METR) was the strongest performer, with a return of 15.66%. With its 8% weighting it contributed a return of 1.25%. HAN-GINS Cloud Technology UCITS ETF (SKYY) also provided a strong impact, with returns of 13.37%, contributing 1.06% to the portfolio’s performance.
The detractors to the thematic portfolio included the Solar Energy UCITS ETF (TANN) and the Procure Space UCITS ETF (YODA).
Balanced Portfolio – return of 1.36%
The balanced portfolio returned 1.36% over the period. Lyxor Core MSCI World (DR) UCITS ETF, with a return of 7.55% and weighting of 11.17%, provided 0.8% of the performance. Vanguard S&P 500 UCITS ETF was the next strongest performer, with a return of 65.70% and weight of 6.4%, contributing 0.51% to the portfolio.
The detractors to this portfolio included Vanguard USD Corporate 1-3 Year Bond UCITS ETF, and Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS ETF.
Climate Change ESG Growth Portfolio – return of 1.91%
This climate focused portfolio returned just under 2% over the period. The strongest performer being Lyxor Net Zero 2050 S&P World Climate PAB (DR) UCITS ETF, with a return of 9.21%, maintaining a weighting of 19.8%, and contributing a return of 1.82%. The next strongest performer was Amundi Index MSCI Emerging Markets SRI UCITS ETF, returning 5.04% with a weighting of 12.5%, resulting in a positive contribution of 0.63% to the portfolio.
The detractors to this portfolio included The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU) and L&G ESG USD Corporate Bond UCITS ETF
Digital Assets and Crypto Portfolio – return of -3.66%
The best performing fund within this portfolio was ETC Group Physical XRP (GXRP), returning 23.54% and a weighting of 13.8%, contributing a return of 3.25%. This was supported by the positive contribution of ETC Group Digital Assets and Blockchain Equity UCITS ETF (KOIN), which returned 15.38% with a weighting of 20%, and contributed 3.08% to the portfolio return.
However, the positive performers of this portfolio were severely outweighed by detractors, including ETC Group Physical Polygon (MTCE), and ETC Group Physical Cardano (RDAN), which resulted in the negative portfolio return of -3.66%.
Future Trends Themed Equity Portfolio – return of 3.93%
This portfolio returned just over 3.9%, with its strongest performer being Sprott Uranium Miners UCITS ETF (URNM), with a return of 14.45% and weighting of 10%, meaning it contributed 1.44% towards the total portfolio return. This was positively supported by ETC Group Global Metaverse UCITS ETF (METR), which had a return of 15.66% with a weighting of 8%, thus contributing 1.25% towards the portfolio return.
The detractors included Electric Vehicle Charging Infrastructure UCITS ETF (ELEC) and The Medical Cannabis and Wellness UCITS ETF (CBDX) – Acc. They returned -1.27% and -0.95% respectively, weakening the return.
All performance figures are showing net data. Returns are in GBP, portfolios are also available in euros. Past performance is not indicative of future performance and when you invest in ETFs or ETCs your capital is at risk.