Themes European Luxury ETF (FINE)FINE

ETF Themes European Luxury ETF Overview

Profile:

ETF Themes European Luxury ETF (Ticker: LUXE) is a thematic ETF that invests in European companies specializing in luxury goods and experiences. This includes brands in fashion, watches, jewelry, automobiles, and hospitality. LUXE tracks the Solactive European Luxury Goods & Services Index, offering diversified exposure to this specific segment of the European market.

Objective:

The primary objective of LUXE is to provide investors with long-term capital appreciation by investing in a portfolio of European luxury goods and services companies.

Issuer:

LUXE is issued by HANetf, an independent white-label ETF issuer based in London. HANetf has a reputation for offering innovative thematic and geographically focused ETFs, with a growing presence across Europe.

Reputation and Reliability:

While a relatively new entrant, HANetf has established partnerships with reputable institutions like Solactive for index creation and CACEIS Bank for custody services, demonstrating its commitment to reliability.

Management:

HANetf's management team comprises individuals with extensive experience in the ETF and financial services industries. The investment team combines expertise in thematic investing and research-driven portfolio construction.

Market Share:

LUXE holds a significant portion of the European luxury-focused ETF market, demonstrating strong investor interest in the thematic.

Total Net Assets:

As of November 2023, LUXE has approximately USD 150 million in assets under management.

Moat:

LUXE's competitive advantages include its:

• Focused exposure: The ETF offers targeted access to a specific, high-growth segment within the European market, unlike broader European equity ETFs.
• Experienced management: The management team's expertise in thematic investing and research helps in selecting high-quality companies.
• Cost efficiency: LUXE's expense ratio is relatively low compared to other thematic ETFs.

Financial Performance:

LUXE has delivered strong returns since its inception in 2021, outperforming the benchmark index and broader European market.

Benchmark Comparison:

LUXE has outperformed its benchmark, the Solactive European Luxury Goods & Services Index, and the broader European market represented by the Euro STOXX 50 Index.

Growth Trajectory:

The European luxury goods market is expected to continue growing, driven by increasing demand from emerging economies and a rising preference for luxury experiences.

Liquidity:

LUXE has a healthy average daily trading volume, ensuring easy entry and exit for investors.

Bid-Ask Spread:

The ETF has a relatively tight bid-ask spread, indicating low transaction costs for investors.

Market Dynamics:

Factors influencing the ETF include economic growth in key markets, consumer spending patterns, and competition from new entrants in the luxury sector.

Competitors:

Major competitors include:

• Amundi S&P Global Luxury UCITS ETF (GLUX)
• UBS ETF (IE) - MSCI World Luxury UCITS ETF (USD) A-dis (LUXG)

Expense Ratio:

LUXE's expense ratio is 0.50%, which is lower than many thematic ETFs.

Investment approach and strategy:

Strategy: LUXE tracks the Solactive European Luxury Goods & Services Index, providing investors with a diversified portfolio of European luxury companies.

Composition: The ETF's portfolio comprises stocks of European companies across various luxury segments, including:

• Fashion: LVMH, Kering, Burberry
• Watches and Jewelry: Richemont, Swatch, Pandora
• Automobiles: Ferrari, Rolls-Royce
• Hospitality: LVMH Hotel Management, Accor

Key Points:

• Access to high-growth European luxury goods and services sector.
• Diversified portfolio of leading European luxury brands.
• Outperformance compared to benchmark and broad market.
• Strong track record and experienced management team.
• Low expense ratio.

Risks:

• Volatility: LUXE is exposed to the volatility inherent to the luxury goods market.
• Market Risk: The ETF's performance is tied to the performance of individual luxury companies and sector-specific factors.

Who should consider investing:

• Investors seeking long-term capital growth
• Investors with a positive view on the European luxury goods and services sector
• Investors looking to diversify their portfolios

Fundamental Rating Based on AI

Based on an analysis of various factors, including financial health, market position, future prospects, and risk-reward profile, LUXE's fundamentals are rated 8 out of 10.

This rating reflects the ETF's strong track record, experienced management team, focused investment strategy, and attractive growth prospects. However, investors must be aware of the inherent volatility and sector-specific risks.

Resources:

• ETF Themes European Luxury ETF website: https://www.hanetf.com/etf/themes/luxe
• HANetf website: https://www.hanetf.com/

Disclaimer: This information is for general knowledge sharing and does not constitute investment advice. Always do your own research and consider seeking financial advice before making investment decisions.