HAN-Gins Cloud Technology and Healthcare Innovation ETFs change to equal weighted indices with ESG screening
- HAN-GINS Indxx
Healthcare Innovation ETF and HAN-GINS Indxx Healthcare Innovation ETF change
indices better positioned to capture growth across expanding sectors
- New cloud index
designed to target forecasts of 22% annual increases in global
Cloud spending and fast-growing sectors such as telemedicine
- New methodologies
will be equal weighting instead of market capitalisation, enabling smaller
innovative companies to contribute to ETF performance
- Change of name of
both funds to reflect the equal weighting of their holdings
- Inclusion of a
negative ESG screen in both indices
HANetf is introducing new
indices and names for its HAN-GINS
Cloud Technology UCITS ETF (SKYY) and HAN-GINS
Indxx Healthcare Innovation UCITS ETF (WELL) as they build to target
expanding growth opportunities in the Cloud Technology and Healthcare Innovation
sectors. The funds will now be re-named
the HAN-GINS Cloud Technology Equal Weight UCITS ETF (SKYY) and the
HAN-GINS Indxx Healthcare Megatrend Equal Weight UCITS ETF (WELL).
The pandemic and global lockdowns
have transformed both markets in the past year with Cloud spending expected to
hit $500 billion within two years
and the emergence of healthcare innovation sectors such as telemedicine which
is expected to grow at
over 30% a year to 2025.
Investor demand for solutions in
the sectors has seen more than $1 billion
in assets invested in Cloud Technology UCITS ETFs since HANetf launched the
first in the sector in Q4 2108 and large inflows into healthcare innovation
during the pandemic demonstrates the long-term confidence in ongoing growth.
The HAN-GINS Tech Megatrend Equal Weight UCITS ETF – ITEK
was the first equal weighted ETF in the HAN-Gins range and has provided a
unique investment proposition for investors to access 8 megatrends including
Robotics & Automation, Cloud Computing &
Big Data, Cyber Security, Future Cars, Genomics, Social Media, Blockchain and
Digital Entertainment in one single trade has less than 10% exposure to the
FAANGS yet still outperformed the Nasdaq 100 by over 12% in 2020 (59.9% ITEK
return vs 47.6% Nasdaq). Past performance is no guarantee of future
performance. Switching SKYY and WELL to equal weighting
should bring similar diversification advantages as enjoyed by investors in ITEK.
effective date of the SKYY and WELL index change is 9th April 2021.
Changes to SKYY:
Updating the index methodologies positions
the funds to benefit from a broader range of stocks – the Cloud computing ETF's index will track 75
constituents and include companies from the three major sub-themes of
Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software
as a Service (SaaS). SaaS will have the larger share of the portfolio.
Cloud computing ETF's will track the Solactive Cloud Technology
Equal Weight Index where top 10 holdings include companies such as Teradata Corp,
Avaya Holdings, Hewlett Packard, Intel Corp, and Extreme Network. Around
three-quarters of the index is US-based, and back-tested performance showed it
achieved 56.88% returns last year.
For both funds there
will be an inclusion of a negative ESG screen including: norms based
screening, controversial weapons screening and a simple fossil fuel sector
Changes to WELL:
The new methodology enables the Healthcare Innovation ETF to add the sub-theme megatrend of telemedicine which has performed strongly
during the pandemic as well as expanding healthcare analytics to include
bioinformatics and adding information
technology services and medical/nursing services as an industry.
Sub-themes will be capped to avoid over-reliance.
The methodology switches to equal weighting from market capitalisation
ensuring smaller innovative firms can contribute better to performance and an ESG
screen is being added so only companies that comply with the UN Global Compact
principles, including, companies with activities involving controversial weapons,
and companies that have low fossil fuel exposure can be included.
WELL will track the Indxx Global NextGen
Healthcare Index which focuses on megatrend sub-themes including Genome
Sequencing, Healthcare Analytics, Robotics, Medical Devices, Biological
Engineering, Neuroscience, Telemedicine, Healthcare Trackers, Nanotechnology
Anthony Ginsberg, Co-Creator of the HAN-GINS Indxx Cloud Technology (SKYY)
and Healthcare Innovation (WELL) ETFs says: “2020 was transformational
for Cloud and Healthcare Innovation as the pandemic and global lockdowns
accelerated trends that were already underway.
“The switch to the digital world for work and leisure is likely to
continue and will require continuing expansion of computational power while demand
for innovative healthcare solutions will keep growing boosting companies in the
the index methodology to expand the constituent base and add sub-themes which
have grown in importance means both funds can ensure investors are positioned
to benefit from newly emerging trends with high growth rates which the switch
to equal weighting underpins. Incorporating basis ESG screens ensures we are
aligned with what investors expect.”
Top 10 holdings include GW Pharmaceuticals, Cellink
AB, Myriad Genetics, Inovalon Holdings, and Alector Inc. Around 78% of the
index is North America-based and back-tested performance showed it achieved 57.6%
returns last year. Past performance is no guarantee of future performance.
Hector McNeil, Co-CEO of
HANetf “The three HAN-Gins ETFs are an important part of the ever
expanding and market leading HANetf thematic ETF range. Over the last few years,
the World has changed dramatically and expedited many megatrends, especially in
technology and healthcare. There has also been a march for ESG principles to
become more mainstream in asset management. The new indices for SKYY & WELL
have greatly enhanced both ETFs for these trends and HANetf now has a wide
selection of equally weighted products available.”
When you trade ETFs your capital
is at risk.
For further information, please
join our webinar: HAN-GINs
ETFs -A pivot towards progress on April 14th 2020.