Wikipedia:Hector McNeil (ETF Pioneer)

Hector McNeil

Hector McNeil (born 1968, Northallerton) is a prominent figure in the Exchange-Traded Fund (ETF) industry, recognized for his pioneering role in the development and expansion of ETFs in Europe. With a career spanning over three decades, McNeil has contributed significantly to the growth of the ETF market, founding and leading multiple successful ventures, including ETF Securities, BoostETP, WisdomTree, and HANetf, the first independent 'white label' UCITS ETF platform in Europe. He has been widely acknowledged for his expertise and influence in the financial sector, earning a place in the ETF Stream ‘30 Index,’ which recognizes the most influential ETF professionals globally.

Early Career and Education

Hector McNeil was educated at the University of Hull, where he earned a Bachelor of Arts in Economic & Social History. He later pursued a Master of Business Administration (MBA) at the University of Warwick, graduating in 1993. McNeil is a Fellow of, and also holds a Diploma in Finance from, The Chartered Institute for Securities & Investment (CISI). His educational background laid the foundation for his successful career in finance and investments.

McNeil began his professional career at London Stock Exchange, where he worked as a senior manager from 1989 to 1995. During this time, he gained experience in various areas, including strategy, market supervision, business development, and settlement. After completing his MBA in 1993, McNeil joined Morgan Stanley as a Vice President in the New Issue Operations team, where he worked until 2000.

Founding of Susquehanna's ETF Desk and ETF Securities

McNeil's journey into the ETF industry began in 2002 when he joined Susquehanna International Group as Head of Business Development. Here, he played a pivotal role in establishing Susquehanna’s ETF desk in Europe, which marked the beginning of his significant involvement in the ETF market. McNeil's expertise in ETF business development led him to ETF Securities, where he was a founder and Co-Managing Partner from 2005 to 2010. During his tenure at ETF Securities, McNeil was instrumental in the company's growth and its expansion into new markets. It’s also where he met his subsequent business partner Nik Bienkowski who was his Co-Managing Partner.

Boost ETP and Acquisition by WisdomTree

In 2011, McNeil, alongside business partner Nik Bienkowski, founded BoostETP, a leading provider of short and leveraged exchange-traded products (ETPs) listed across major European exchanges. Boost ETP quickly gained recognition for its innovative approach to ETPs, offering a wide range of products designed to meet the needs of active traders and investors.

In 2014, BoostETP was acquired by WisdomTree, a major US-based ETF provider. Following the acquisition, McNeil served as Co-CEO of WisdomTree Europe until his departure in 2016. Under his leadership, WisdomTree Europe expanded its portfolio of ETFs and ETPs, solidifying McNeil's reputation as a key player in the European ETF market. Initially, McNeil and Bienkowski co-owned as sizable minority stake in WisdomTree Europe until they were bought out in 2016.

HANetf: Europe's First Independent White Label ETF Platform

In 2017, McNeil and Bienkowski co-founded HANetf, Europe’s first independent ‘white label’ ETF platform. HANetf was established to provide asset managers with a turnkey solution to enter the European ETF market, offering operational, regulatory, distribution, and marketing services for firms looking to launch UCITS ETFs and ETCs in Europe.

Since its founding, HANetf has launched numerous innovative products, including Europe’s first gold exchange-traded commodity (ETC) sponsored by The Royal Mint, the first Bitcoin exchange-traded product (ETP) on Deutsche Börse Xetra, and Europe’s first cloud technology ETF. The firm’s success in providing low-cost and efficient solutions for asset managers has led to rapid growth, with HANetf now managing over USD 5 billion in assets across 35 products from 20 firms. The firm is currently Europe’s largest and most successful European white label ETF firm.

Achievements and Recognition

McNeil has been recognized for his contributions to the ETF industry through various accolades. In 2017, he was included in the ETF Stream ‘30 Index,’ which honors the most influential ETF professionals globally. McNeil's achievements in the ETF sector are also reflected in his role as a key figure in the creation and development of over 680 exchange-traded products (ETPs), representing approximately 8% of all ETPs globally.

Strategic Shift in the ETF Market

In interviews and industry commentary, McNeil has advocated for a shift in investment strategy, particularly in the technology sector. He has expressed concerns over the high price-to-earnings (PE) ratios and concentration risks associated with the so-called 'Magnificent Seven' major tech firms. Instead, McNeil has emphasized the potential of broader tech themes, such as robotics, cybersecurity, and digital entertainment, and the importance of diversification in tech investments. He has also highlighted the advantages of equal-weighted ETFs, such as the HAN-GINS Tech Megatrend Equal Weighted UCITS ETF (ITEK), which ensures no single stock dominates the index, providing a more balanced investment approach. He has also led many European and Global firsts in the ETF space and is well known for innovations such as Gold, Oil, Thematic, Active and structured outcome ETFs.

Personal Life and Background

Born into a family with Scottish and Yorkshire roots, McNeil attributes his work ethic and entrepreneurial spirit to his upbringing. A former semi-professional rugby player, McNeil believes his background in sports helped shape his approach to business, instilling in him the values of teamwork, competitiveness, and a drive to succeed. He has stated that his experience in sports has given him an edge in the business world, particularly in managing teams and maintaining high standards. He played regularly for Scotland Students Rugby League whilst at University and was a founder, player, coach and ultimately majority owner of London Skolars Rugby League Club.

Future Plans and Expansion

Under McNeil’s leadership, HANetf continues to expand its product offerings and global presence. The firm has plans to grow its platform and work with fixed income asset managers to diversify its range of products further. In addition, HANetf has been focusing on developing opportunities in the US market, where it sees significant potential for growth by encouraging US, Canadian and Latin American asset managers to use the HANetf platform to launch UCITS ETFs.

McNeil remains committed to driving innovation in the ETF industry, continually looking for new ways to reduce barriers to entry for asset managers and improve the efficiency of the ETF market. His vision for the future of ETFs includes further diversification and the expansion of thematic and digital asset products.

Impact

Hector McNeil’s influence on the ETF industry is undeniable. Through his work at Susquehanna, ETF Securities, Boost ETP, WisdomTree, and HANetf, McNeil has played a crucial role in shaping the European ETF market. His ability to identify emerging trends and innovate within the ETF space has cemented his position as one of the most influential figures in the industry. As HANetf continues to grow and diversify, McNeil’s legacy as a pioneer of the ETF industry will undoubtedly continue to inspire future generations of financial professionals. He is one of Europe’s only entrepreneurs in the ETF space and is determined on lowering the barriers to entry to the European ETF market.