We are delighted to announce new indices and name changes for the 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 also be re-named the HANS-GINS Cloud Technology Equal Weight UCITS ETF (SKYY) and the HAN-GINS Indxx Healthcare Megatrend Equal Weight UCITS ETF (WELL) effective 9th April.
For both SKYY and WELL there will be an inclusion of a negative ESG screen including: norms based screening, controversial weapons screening and a simple fossil fuel sector screen.
HAN-GINS Cloud Technology UCITS ETF (SKYY)
The global pandemic has had a monumental impact on many aspects of our day to day lives, not least in how we interact with one another.
Investor demand for solutions in the sectors has seen more than $1 billion  in assets invested in Cloud Technology UCITS ETFs since SKYY launched which was the first in the sector in Q4 2018. The pandemic and global lockdowns have transformed the Cloud market in the past year with Cloud spending expected to hit $500 billion within two years.
Changes to SKYY:
Updating the index methodologies positions the funds to benefit from a broader range of stocks – SKYY’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.
SKYY 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.
The effective date of the SKYY index change and the new name change to the HANS-GINS Cloud Technology Equal Weight UCITS ETF (SKYY) will be 9th April.
HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL)
The HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL) has received significant inflows across the past twelve months, with the sector having attracted renewed interest from investors amid the coronavirus pandemic.
Medical innovation is now firmly at the forefront on many investors’ minds, with emergent technologies and solutions having been necessitated by the events of 2020 and the emergence of healthcare innovation sectors such as telemedicine is expected to grow at over 30% a year to 2025.
Changes to WELL:
The new methodology enables WELL to add the sub-theme 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, are not involved in controversial weapons, and have low fossil fuel exposure can be included.
WELL will track the Indxx Global NextGen Healthcare Index which focuses on sub-themes including Genome Sequencing, Healthcare Analytics, Robotics, Medical Devices, Biological Engineering, Neuroscience, Telemedicine, Healthcare Trackers, Nanotechnology and Bioinformatics.
Rebalance for Tech Megatrend (ITEK)
The HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) is targeting growth in the Blockchain sub-sector after rebalancing to include 11 new Blockchain holdings. One of eight subthemes, Blockchain now represents approximately 13% of ITEK, therefore positioning it to benefit from increasing interest in the sector.