Boutique investment manager Harwood Capital Management is set to enter the European ETF market with the takeover of HANetf's digital infrastructure ETF.
The Digital Infrastructure and Connectivity UCITS ETF (DIGI) will switch from a passive strategy that tracks the Tematica BITA Digital Infrastructure and Connectivity Sustainability Screened index to being actively managed.
Currently, DIGI captures companies that derive 80% of their revenues from the digital infrastructure and connectivity sector.
Following the changes, DIGI will invest at least 80% of its portfolio in equities alongside investing in sovereign bonds issued by governments of developed market countries.
As a result of the changes, the ETF will be renamed to the Global Balanced Fund UCITS ETF.
The changes - subject to shareholder approval - will take effect on or around 22 August.
Harwood’s first ETF will be managed by Goshawk Asset Management, created by Harwood in November 2023.
Actively managed ETFs have continued to be a catalyst for the growth of the European ETF market, recording inflows of $6.8bn in the first half of 2024, according to Morningstar data.
Hector McNeil (pictured), co-founder and co-CEO of HANetf, said: “It is great to be partnering with Harwood Capital Management to launch a new UCITS ETF in Europe.
“At HANetf, we pride ourselves on our ability to enable asset managers from around the globe to launch new and innovative products in Europe, with minimal barriers to entry.”
“White-label enquiries at HANetf are up 40% this year so far and we expect that number to continue growing.”
The ETF white-label market has recently accelerated in recent months, with Guinness Asset Management and Harbor Capital Advisors both launching their first ETFs.
In addition, Waystone ETF recently took over Northern Trust Asset Management’s Irish platform, while Goldman brought Baader Bank’s artificial intelligence-led ETF to market.
