HANetf : From bricks to clicks; new UCITS online ecommerce ETF to list on London Stock Exchange
Hector McNeil of HANetf
- The Global Online Retail UCITS ETF – IBUY provides exposure to the leading online retailers across the globe, enabling investors to participate in the trend away from physical stores (“bricks”) to online and virtual sales (“clicks”).
- Tracks EQM Global Online Retail Growth Index, a smart beta index from the team at EQM Indexes, a developer of disruptive thematic indexes.
- The Index provides exposure to the fastest growing names in Online Retail and Online Marketplaces.
- Key holdings in the e-commerce ETF include Etsy, HelloFresh, Peloton, and Delivery Hero.
In March HANetf, Europe’s first ‘private label’ UCITS ETF issuer, will launch a UCITS ETF tracking the EQM Global Online Retail Growth Index. The Index is a globally-diverse basket, including developed and developing markets, of publicly-traded companies that obtain 60% or more of revenue from online retail and online marketplace commerce. The Global Online Retail UCITS ETF (LSE ticker: IBUY) will list on London Stock Exchange later this month.
The Global Online Retail UCITS ETF (IBUY) will track the EQM Global Online Retail Growth Index (IBUYGRON) and will have a TER of 0.69%. The index seeks to track the combined performance of a basket of global stocks that derive significant revenue from online commerce generated by the online retail and online marketplace segments. The index is revenue-weighted with a maximum of 25% of exposure to Emerging Markets. Key holdings include Etsy, HelloFresh, Peloton, and Delivery Hero.
The team behind the EQM Global Online Retail Growth Index have created and managed indexes that are used by US ETFs with over USD $4.6 billion in assets under management, including 5-star Morningstar rated funds.
Jane Edmondson, Co-Founder and Principal of EQM Indexes said “The case for online retail has never been stronger. Online retail is the fastest growing segment of retail sales. Competitive pricing, shopping convenience, greater product selection, and rapid delivery have made online retail a disruptive technology that is here to stay.
We are very excited the EQM Global Online Retail Growth Index will serve as the benchmark for a UCITS ETF in Europe. US investors have recognized the investment opportunity in online retail stocks and we expect to see similar demand from investors in Europe, Asia and many other countries using UCITS products.
HANetf offers a unique platform for business like ours and provides a one stop shop for issuance, capital markets, marketing and distribution. We look forward to listing the Global Online Retail UCITS ETF (LSE ticker :IBUY) on the London Stock Exchange using the HANetf platform.”
The case for online retail
There are several factors that support the strong growth of online retail:
- Growing Global Opportunity: While growth has slowed for the traditional brick and mortar retailers, online retail continues to exhibit strong growth characteristics, gain market share, and expand globally
- Expanding Internet and Mobile Penetration: While more than 60% of the globe currently has access to the Internet, that opportunity set is rapidly growing thanks to smart mobile devices which enable consumers to shop anywhere and anytime online.
- Technological Advancement: Future technological innovations such as seamless and secure methods of electronic payment, voice assisted shopping, virtual and augmented reality, and artificial intelligence will take the online shopping experience to the next level and further drive market expansion and growth.
- Trend Accelerated by Pandemic: While online retail was already a disruptive force in retail, the pandemic has accelerated this trend and solidified buying patterns for years to come.
Hector McNeil of HANetf said: “We are delighted to bring the Global Online Retail UCITS ETF (IBUY) to the European investment market. It focuses on a dynamic, fast-growing sector, that has only just begun to change the way consumers shop all over the world. IBUY is an excellent addition to the HANetf’s range of thematic ETFs which provide investors with the opportunity to participate in global megatrends.
HANetf is becoming known as a leading thematic UCITS ETF platform and creator of European market firsts and builds on our success with other thematic themes including emerging markets e-commerce, Bitcoin, medical cannabis, cloud computing, medical innovation, 5G digital connectivity & infrastructure and more. Investors are voting with their feet and have helped HANetf grow from $67m at the start of 2020 to over $2bn today .”