HANetf, Europe’s first independent white-label ETF and ETC platform, and leading provider of thematic ETFs, and crypto and commodity ETCs, has announced that it has launched six highly innovative model portfolios.
The model portfolios, developed in partnership with Algo-Chain, use state of the art technology to screen extensive market, macro-economic and ETF data sets from around the world. This is used alongside a human overlay to determine economic cycles and risk appetite in the markets and to capture the risk premia across various asset classes. The portfolios will be rebalanced every quarter.
The target audience for the model portfolios are financial advisers, wealth managers, private banks, execution only brokers, robo advisers and any other money managers who want to offer ETF portfolios to their end clients. Model portfolios have become a significant part of the US ETF market ecosystem and HANetf believes the same will happen in Europe.
The model portfolios are as follows: · Balanced Portfolio · Growth Portfolio · Adventurous Portfolio · ESG Growth Portfolio · Future Trends Themed Equity Portfolio · Digital Assets and Crypto ETP Portfolio
The Balanced, Growth, and Adventurous model portfolios use ETFs to provide exposure to equities, fixed income, commodities, and alternative assets. Each portfolio has a different asset allocation, giving it a different risk level, target volatility and target maximum drawdown, shown in the table below. Third party ETFs are used where appropriate to supplement the highly innovative range of HANetf ETFs. It is the norm that most ETF providers who offer model portfolios tend to only use in-house products, but HANetf believes a more open selection model is optimal.
The ESG Growth Portfolio is also a multi-asset portfolio, but investing in Impact Investing and ESG Themed ETFs. Impact Investing seeks to provide capital to address the world’s most pressing challenges in sectors such as renewable energy and other companies providing climate change solutions. The portfolio has around 12% exposure to iClima Global Decarbonisation Enablers UCITS ETF (CLMA) and 6% exposure to HANetf S&P Global Clean Energy Select HANzero™ UCITS ETF (ZERO). ZERO is uniquely a carbon neutral investment, using carbon offsets to neutralise all emissions associated with the portfolio’s holdings.