HANetf is transitioning its Travel UCITS ETF (TRIP) from a passive to an actively managed strategy after US Global Investors acquired the fund last year. The change, pending shareholder and regulatory approval from the Central Bank of Ireland (CBI), marks a significant shift in the ETF’s management approach.
The TRIP ETF, which previously tracked the Solactive Travel Index, will now be actively managed by US Global Investors. As part of the overhaul, the fund will also be renamed the US Global Investors Travel UCITS ETF.
The Solactive Travel Index, which TRIP currently follows, provides exposure to companies in the travel and tourism sector, including airlines, hotels, cruise lines, and online booking platforms. Under the new active strategy, the ETF will adopt a systematic stock selection process, focusing on factors such as momentum and mean reversion. Additionally, the fund will be rebalanced quarterly, a shift from its current annual rebalancing schedule.
Frank Holmes, CEO and CIO of US Global Investors, emphasized that while the ETF will follow a rules-based approach, a portfolio manager will oversee the process to ensure data accuracy and effective execution.
The acquisition of TRIP by US Global Investors followed the merger of its own fund, the US Global Jets UCITS ETF (JETS), into TRIP earlier this year. JETS had struggled to attract significant assets since its launch in 2021, prompting the consolidation.
This strategic shift aims to enhance the ETF’s performance and appeal to investors seeking targeted exposure to the travel and tourism sector through an actively managed approach.
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