HANetf Launches Enterprise Software ETF With ESG Twist

HANetf, Europe’s leading provider of thematic exchange traded funds, has announced the launch of the Purpose Enterprise Software ESG-S UCITS ETF which will offer investors an efficient way of gaining diversified exposure to the fastest-growing global software companies.

HAN has partnered with Canada-based exchange-traded fund (ETF) and asset manager Purpose Investments to launch on the London Stock Exchange in late July; the new ETF will trade under the ticker ‘SOFT’ and will be passported for sale across Europe to provide investors will exposure to a varied and ESG-screened selection of enterprise software companies at the ‘forefront of the digital revolution’ including several high-profile names such as Adobe, Shopify and Twitter.

The firm said that the new ETF offers investors an ‘efficient means’ of accessing growth trends in the market, which it said has been boosted by an acceleration of digital transformation across industries.

‘Unlike other technology ETFs that include SaaS (Software as a Service), PaaS (Platform as a Service), and IaaS Infrastructure as a Service) companies, SOFT focuses on SaaS companies that are uniquely positioned to benefit from global software megatrends’, HANetf said, adding that the SOFT ETF also excludes companies with exposure to controversial weapons and fossil fuels.

SOFT contains an ESG screen to exclude companies with exposure to controversial weapons and fossil fuels; it will track the Solactive Purpose Enterprise Software ESG Screened Index NTR (SOFTWARN).  The SOFTWARN index performance shows it achieved 50.28% returns in the past 12 months and 473.27% in the last 5 years. It will have a Total Expense Ratio of 0.59%. 

The ETF is the third that Purpose Investments and HANetf have listed together in Europe following the launch of The Medical Cannabis and Wellness UCITS ETF in 2020 and Europe’s first ETF with a carbon offset, HANetf S&P Global Clean Energy Select HANzero UCITS ETF (LSE:ZERO) in June 2021.

‘A big part of our strategy at HANetf has been to offer investors exposures to structural shifts within the world economy. The software industry has played a huge role in the digital revolution and has only come further into focus following the events of 2020, where efficiency within the workplace (office or home) became of paramount importance’, HANetf co-founder and co-chief executive Hector McNeil said in a statement.

‘We’re delighted to work alongside Purpose Investments once again with the launch of Purpose Enterprise Software ESG-S UCITS ETF and provide investors with an efficient structure with which to capture this trend. The addition of SOFT to the HANetf platform reinforces our strong position of offering the most extensive thematic ETF platform in Europe and further focuses on bringing unique offerings and not ‘me too’ ETFs. This ETF range is also unique as it’s backed up by experts in the sectors covered and a monthly report’, the co-CEO added.

Som Seif, Founder and CEO of Purpose Investments said: “The software industry plays an important role in our everyday lives, from business support to photo editing, and has long been at the crux of commercial enterprise.

The global pandemic drove unprecedented growth in the sector, as businesses were forced to pivot and further embrace digitisation, and we believe these trends will have long lasting implications.

As the global economy continues to recover, the Purpose Enterprise Software ESG-S UCITS ETF will provide investors with exposure to the varied, and ESG screened, selection of companies at the forefront of the digital revolution.’

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