A New Age Dawns for European ETFs With Launch of First ETF Via HANetf’s White-Label Platform
-
EMQQ Emerging Markets and Ecommerce UCITS
ETF (EMQQ) will be the First European ETF launched using an independent white
label provider
- Big Tree Capital and EMQQ Index to become
the first client to launch via the HANetf white-label platform
- Barriers to entering the European ETF market
removed by HANetf - bringing successful U.S. based ETF issuer to Europe
- EMQQ aims to provide exposure to companies
benefitting from the growth of internet access and online consumption in the
developing world – the ‘Great Confluence’ of technology and consumerism
London, 27th
September 2018 – HANetf, Europe’s first independent ‘white-label’ UCITS ETF
platform is delighted to announce that the EMQQ Emerging Market Internet and
Ecommerce UCITS ETF (Acc), will launch on London Stock Exchange on Friday, 5th
October (EMQQ LN).
The fund seeks to provide exposure to an index of leading
companies driving the growth of online consumption in the developing world. To
be included, companies must derive more than half their profits from Ecommerce
or internet activities, including search engines, online retailers, social
networks, online video, online gaming, e-payment systems and online travel. Unlike most emerging market indices the
companies included do not need to be listed locally.
This is the first UCITS ETF in Europe to launch via an
independent white-label ETF platform and represents a turning point in the
history of European ETFs, expanding access to an industry where high barriers
to entry have previously limited issuance to large asset managers and
banks. This follows the path of the US
ETF industry where asset managers using a white label platform to launch ETFs
has become commonplace.
In HANetf, asset managers who aspire to join the European
ETF market have a cost effective, scalable and coherent market entry solution.
Many aspiring ETF issuers are concerned about perceived high barriers to entry
and competing with incumbent industry leaders. HANetf provides a new solution -
significantly lowering the barriers to entry and provides scale through
aggregation.
U.S managers in particular see Europe as a much more complex
set of markets. They are used to a market structure that has one or two
exchanges, single settlement & clearing, one currency, one language and one
tax system. Europe has multiple exchanges, clearing, settlement, taxes,
languages, currencies and other complexities like Brexit and MIFID 2. HANetf
navigates all these complexities for the asset manager.
The EMQQ Emerging Markets and Ecommerce UCITS ETF tracks an
index of leading internet and Ecommerce providers serving the emerging markets.
The index contains over 50 constituents, including Alibaba, Tencent and Baidu,
weighted according to a modified market-capitalization methodology with
individual constituents capped at 8%. The ETF mirrors a highly successful US
listed version of the product that has garnered over $365,000,000 in assets to
date. (21/09/18)
The fund lists on London Stock Exchange (Ticker EMQQ ) with
a TER of 86 bps. The opening share price of $8.88 was chosen specifically for
the triply auspicious connotations in Chinese numerology.
Kevin Carter, CEO of
Big Tree Capital, Founder and Chairman of EMQQ Index Committee said: “We are excited to be launching EMQQ in
Europe with HANetf. Their experience,
knowledge of the market and entrepreneurial spirit make them the ideal partner
for us or anyone else looking to enter the European ETF market. We believe that European investors will
benefit from gaining pure exposure to the fast growing and innovative Internet
companies in Emerging Markets which we believe is the best way to access the
growth of the digital consumers in this large and important part of the world.”
Hector McNeil,
co-Founder and co-CEO at HANetf, said: “The
first launch via the HANetf platform is a significant milestone for our team,
but also a watershed moment for every asset manager wanting to evolve their
European ETF strategy. With this launch, HANetf has single-handedly removed the
high barriers to creating and launching ETFs in Europe, opening the gates for
more asset managers – traditional, systematic or active - to benefit from the
powerful distribution potential of ETFs. With a tremendously successful fund in
North America, the EMQQ team have been keen to expand their distribution
potential and we are delighted to have worked with them over to bring this
proven idea to Europe.
EMQQ is an ideal
strategy for our first launch, being highly innovative and unique to the
European market. US and Asian managers who haven’t entered the European ETF
market are a major target for HANetf. Prior to the advent of HANetf overseas US
and Asian ETFs have struggled to enter Europe coherently mainly due to the added
complexity of multiple exchanges & settlement systems, languages,
currencies, local laws and many other things that don’t exist in their home
markets. HANetf greatly improves new ETF issuers chances of success. Add that
to a great ETF such as EMQQ this is a great way to launch HANetf onto the
European ETF landscape.”
Lida Eslami, Head of
London ETP Business Development, London Stock Exchange Group added: “We are delighted to welcome EMQQ Emerging
Markets Internet and Ecommerce UCITS ETF, the first ETF in Europe to launch via
an independent white-label platform, HANetf.
This new ETF adds to
the diverse range of funds available on our markets and highlights London as
the premier listing and trading venue for ETFs in Europe and a strong funding
partner to a sector that is reshaping the global financial services landscape.”