Europe’s first thematic ETF focusing exclusively on digital infrastructure and connectivity lists in Germany
- Digital Infrastructure and Connectivity UCITS ETF (ticker: DIGI) has listed on Deutsche Boerse's Xetra
- Our Technology ETF provides exposure to
companies at the forefront of the digital infrastructure revolution which allow
for 5G and Cloud to continue growing exponentially
- Global
internet traffic is expected to grow 370% by 2022 as the number of users, the
number of devices per user, and the amount of data per device all increase
- DIGI tracks the
performance of the Tematica BITA Digital Infrastructure and Connectivity Index
(TBDIGI) which has returned 40.87% over the last 12 months (to 30 September
2020)
- Digital Infrastructure and
Connectivity UCITS ETF is a partnership between Quikro, Tematica Research and
HANetf; it will be the 11th ETF on the HANetf platform since it
launched its first ETF in October 2018
- DIGI
will be the 6th
Thematic ETF making HANetf one of the leading providers of Thematic ETFs in
Europe
19 October, London
A first-to-market thematic
ETF focusing on digital infrastructure and connectivity[1] sponsored by Quikro will
launch across Europe via the HANetf platform. The Digital Infrastructure and Connectivity UCITS ETF (DIGI) has listed on Deutsche Boerse's Xetra today.
This revolutionary Technology ETF
captures companies that are positioned to benefit most from
the explosive
growth of the digital infrastructure virtuous circle of expanding users,
data, applications, and bandwidth. Global internet
traffic is expected to grow 370% by 2022 according to Cisco Systems as the
number of users, the number of devices per user, and the amount of data per
device all increase[2]. This is underpinned by massive
transformations in economic, cultural and social needs as people increasingly
digitise how they live, work, study, transact and communicate.
The Digital Infrastructure and Connectivity UCITS ETF (DIGI) focuses on six key sub-themes which follow
the journey of data as it travels from storage to end-user:
- Data centres
- Digital connectivity
- Data networks
- Digital transmission
- Digital processing
- Digital services and
intellectual property
The ETF has been developed by
Quikro, an investor in the financial services industry, which sponsors the
launch and development of innovative exchange-traded funds (ETFs), and HANetf.
Working with Tematica Research LLC, they have developed a new and unique index
for the ETF.
Our Technology ETF will follow a new index called Tematica BITA
Digital Infrastructure and Connectivity Index (TBDIGI), which comprises over 80
global equities who are at the forefront of the digital infrastructure
revolution. Companies in the index
include InterDigital (IDCC), Fastly (FSLY), Skyworks (SWKS) and Equinix
(EQIX). The performance of the Tematica
BITA Digital Infrastructure and Connectivity Index (TBDIGI) returned 40.87%
over the last 12 months (Source: BITA, as of 30.09.2020). Past performance is no guarantee of future
performance.
While other investment
strategies may focus on the build-out of single digital segments such as 5G or
cloud or telemedicine, the Digital Infrastructure and Connectivity UCITS ETF
(DIGI) seeks to capture the explosive growth in data traffic across all digital
segments as next-generation connective technologies roll out, resulting in
ever-increasing demand for better digital infrastructure and connectivity
solutions.
Omar ElKheshen, CEO of Quikro
said: “The roll-out
of 5G, Cloud, IoT, VR, and other disruptive technologies, in addition to
permanent lifestyle changes linked to Covid-19, will continue to accelerate the
trend towards further digitisation and virtual communication. With that
arises a growing and insatiable need for digital infrastructure to support everyday
digital activities and the immense amount of data flowing behind them.
This is a huge opportunity for investors and our new ETF, the Digital Infrastructure and
Connectivity UCITS ETF (DIGI), will provide an
opportunity to potentially capitalize on this.”
Christopher Versace, Chief
Investment Officer of Tematica Research LLC said: “With almost five billion people connected to the
internet today, the demand for continuous access to digital information and
communication is growing exponentially. By 2022, new and existing
applications are expected to drive mobile data traffic alone to 930 exabytes
per year, an 11,300% increase over 2012, which equates to all the movies ever
made crossing global mobile networks every 5 minutes. 5G and other disruptive
broadband-enabling technologies will foster new rich data applications such as
semi-autonomous and autonomous vehicles that will ultimately drive network
congestion and require further infrastructure investment buildout. This in turn will fuel development of new
applications and data, otherwise known as the virtuous digital circle. The Tematica
BITA Digital Infrastructure and Connectivity Index was designed to capture this
long-term trend.”
Nik Bienkowski, Co-CEO of HANetf said: “The Digital Infrastructure
and Connectivity UCITS ETF focuses on some of the most exciting and
transformational themes in the world today and allows investors to invest in
this long term megatrend of exponential growth in traffic using digital
infrastructure. We are delighted to have
worked with Quikro and Tematica on the development of this exciting new
ETF. This is another ‘first’ to join the
list of innovative market leading ETFs on our platform. DIGI will be a great
addition to our burgeoning Thematic ETF offering and reinforce the value add
HANetf is bringing to end investors.”
The Digital Infrastructure and Connectivity UCITS ETF (DIGI) has a TER of 69 basis points.
Exchange
|
Bloomberg Code
|
ISIN
|
SEDOL
|
CURRENCY
|
LSE
|
DIGILN
|
IE00BL643144
|
BJP4Y29
|
USD
|
LSE
|
PIGILN
|
IE00BL643144
|
BJP4Y18
|
GBP
|
Borsa Italia
|
DIGI IM
|
IE00BL643144
|
BMW4W74
|
EUR
|
Deutsche Boerse: Xetra
|
DIGI GY
|
IE00BL643144
|
BMW4W85
|
USD
|
About Quikro
Quikro is an investor in the financial services industry. Its purpose is
to sponsor the launch and development of innovative exchange-traded funds
(ETFs).
Quikro’s ETFs aim to outperform the broader market by employing novel
alpha-seeking investment strategies structured around long-term defensible
tailwinds whether economic, demographic, social or otherwise.
Quikro does not sponsor any ETFs unless they are unique and follow an
investment thesis not easily accessible through other ETF providers.
Quikro is mindful of the importance of sustainable, responsible
investment and believes that underlying entities that take Environmental,
Social and Corporate Governance (ESG) represent better long-term investments
for its ETFs.
Tematica
Tematica Research, LLC provides
independent Registered Investment Advisors (RIA’s), financial institutions and
self-directed investors with equity research, economic insights, and investment
ideas based upon its proprietary thematic perspective of the world and
financial markets. Thematic Investing focuses on identifying sustainable market
shifts that come about due to shifting economics, demographics, psychographics,
technologies, mixed with regulatory mandates and other forces.
The thematic discipline utilized
by Tematica across its research and economic commentary, as well as its index
and portfolio construction efforts, is the culmination of the more than 20
years Chief Investment Officer Chris Versace spent analysing industries and
companies in a variety of roles as an equity analyst, portfolio manager,
investment banker and strategic consultant serving both individual as well as
institutional investors.