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Monthly Tech Megatrend Market Report | October

 

Equally Weighted ETF Monthly Report: Key Takeaways

  • President Biden’s $3 trillion budget– allocates a significant boost to EV/Future Car infrastructure across the US ($174bn – 500,000 EV chargers up from less than 50K currently). [1]
  • The budget also allocates $58.4bn towards IT infrastructure – with $10bn allocated to Cybersecurity and $12bn to Genetic Sequencing. [2]
  • ITEK is up 16% for 2021 and since its inception (3yr) approximately 120% (20th October; Bloomberg).
  • Top subtheme performers in 2021 are led by Genomics, 17.6%, Robotics 14.7%, Blockchain, and Future Cars 9.6%. (See table on next page)
  • Top 30 performing holdings represent most subthemes - all producing 20%+ gains so far in 2021 – led by BioNTech (313%), Fortinet (96.6%), Sea (60.1%), Nvidia (58.8%), Alphabet (52.5%) Riot (51.3%) and Evolution. [3]
  • Global Cloud spending is expected to double to $1.3 trillion by 2025 - annualized growth rate (CAGR) of 17%, according to International Data Corporation (IDC). [4]
  • Unlike Nasdaq and other Tech indices - which are overweight Big Tech; ITEK’s FAANG exposure remains under 7% - versus 40% in the Nasdaq 100. [5]

 

Macro Outlook

Much of Biden’s clean energy and infrastructure plans are likely to pass Congress and boost EV vehicle spending dramatically. [6]

The US is intent on catching China world EV leader – targeting one third of all China car sales by 2025. Canalys expects 51% EV growth in China alone in 2021. [7]

Majority of corporate IT budgets are now devoted to Cloud spending – as hardware budgets have been dramatically cut. [8]

Demand for cybersecurity expanding and boosted by continued WFH trends and hack attacks. [8]

More cybersecurity data breaches occurred in 2020, than the prior 15 years - despite a 10% growth in cybersecurity spending last year to $53bn. [10]

New Wireless communications - 5G, R16 & R17 continues to push Cloud adoption broader – with Asia at the forefront due to fastest speeds/wireless networks. [11]

Asia projected to be largest share of the industrial robotics market over the next 5 years – due to the increased industrialization and shortages of local workforce. [12]   

Many US manufacturers are onshoring their plants - creating huge demand for industrial robots, often cheaper than employing US workers. [13]

 

YEAR TO DATE (30.09.2021)

For illustrative purposes only. Source: Bloomberg / Solactive. Data as of 30.09.21. Please note that all performance figures are showing net data.

 

 Equally Weighted ETF and Index Performance (As of 30.09.2021)

 

1M

3M

6M

YTD

12M

2Y

SI

HAN-GINS Tech Megatrend UCITS ETF

-7.61%

-5.89%

-2.00%

7.13%

33.00%

92.54%

98.65%

Solactive Innovative Technologies Index (NTR)

-7.62  

-5.81%

-1.77%

-1.77%

7.38%

94.16%

101.51%

Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. Source: Bloomberg / HANetf. Data as of 30/09/2021. Please note that all performance figures are showing net data. 

 

Read more about our Equally Weighted ETF

 

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