Europe’s first digital infrastructure and connectivity ETF has been launched via the HANetf platform, the firm’s sixth thematic ETF to date.
Sponsored by Quikro, the Digital Infrastructure and Connectivity UCITS ETF (DIGI) targets companies which are “positioned to benefit most from the explosive growth of the digital infrastructure virtuous circle of expanding users, data, applications and bandwidth”.
DIGI tracks the Tematica BITA Digital Infrastructure and Connectivity index, which has been developed between Tematica Research and HANetf, and comprises over 80 global equities “at the forefront of the digital infrastructure revolution”.
The fund is focused on six sub-themes, following “the journey of data as it travels from storage to end-user”, which includes data centres, digital connectivity, digital services and intellectual property, data networks, digital transmission and digital processing.
According to Cisco Systems, global internet traffic is expected to grow 370% by 2022, as the number of users, devices per user and the amount of data per device all increase, which this ETF seeks to benefit from.
The 11th ETF on the HANetf platform, DIGI is listed on the London Stock Exchange and has a total expense ratio of 0.69%.
Omar ElKheshen, CEO of Quikro, said: “The roll-out of 5G, Cloud, IoT, VR, and other disruptive technologies, in addition to permanent lifestyle changes linked to Covid-19, will continue to accelerate the trend towards further digitisation and virtual communication.
“With that arises a growing and insatiable need for digital infrastructure to support everyday digital activities and the immense amount of data flowing behind them.”
Christopher Versace, chief investment officer at Tematica Research, added: “By 2022, new and existing applications are expected to drive mobile data traffic alone to 930 exabytes per year, an 11,300% increase over 2012, which equates to all the movies ever made crossing global mobile networks every five minutes.
“5G and other disruptive broadband-enabling technologies will foster new rich data applications such as semi-autonomous and autonomous vehicles that will ultimately drive network congestion and require further infrastructure investment buildout. This in turn will fuel development of new applications and data, otherwise known as the virtuous digital circle.”
Nik Bienkowski, co-CEO of HANetf, said: “The Digital Infrastructure and Connectivity UCITS ETF focuses on some of the most exciting and transformational themes in the world today and allows investors to invest in this long-term megatrend of exponential growth in traffic using digital infrastructure.
“We are delighted to have worked with Quikro and Tematica on the development of this exciting new ETF.”