The ETF model portfolios include a Balanced portfolio, a Growth portfolio, an Adventurous portfolio, an ESG Growth portfolio, a Future Trends Thematic Equity portfolio, and a Crypto portfolio.
Developed in partnership with Algo-Chain, the portfolios screen market, macroeconomic and ETF data sets with human oversight, rebalancing the portfolios every quarter.
The target asset allocation for the Balanced portfolio is 25% equity, 25% fixed income and 10% commodities, while the Growth Portfolio allocates 70% to equity, 20% to fixed income and 10% to commodities.
The Adventurous Portfolio has a target asset allocation of 77.2% equity, 10% fixed income, 10% commodities and 2.8% alternatives, while the ESG Growth Portfolio’s target asset allocation is 73% equity, 15% fixed income and 12% commodities.
Thematic ETFs increasingly gain popularity amongst retail investors
HANetf said the ESG portfolio has around a 12% exposure to iClima’s Global Decarbonisation Enablers ETF, and a 6% exposure to its own S&P Global Clean Energy Select HANzero ETF, which uses carbon offsets to achieve carbon neutrality.
The Future Trends Themed Equity Model portfolio will invest in ETFs that have exposure to the latest megatrends and themes. It is composed of assets in equities across different regions and is run on a higher risk level than the classic portfolios.
The Digital Assets and Crypto ETP portfolio provides exposure to cryptocurrencies, with a maximum weight at rebalance of 20%, as well as holding 20% in a Digital Assets and Blockchain Equity ETF.
As HANetf’s range of products does not cover all assets classes and indices that may be needed in a portfolio, the portfolios use some ETFs from third-party issuers.
For example, the ESG portfolio includes the Amundi Index MSCI World SRI ETF, and the Balanced Portfolio includes the HSBC MSCI Pacific ex Japan ETF.
