- Total Global Cloud computing market size is expected to reach $1.3 trillion by 2028 - annualized growth rate (CAGR) of 19.1%. [1]
- More than 45% of IT spending to shift from traditional solutions to Cloud by 2024. Only 17% in 2021. [2]
- Gartner forecasts end-user spending on public cloud services to reach $396bn in 2021 and grow 21.7% in 2022. [3]
- Cloud computing is the centrepiece of global enterprise response to the COVID-19 crisis and new normal.
- Asian Cloud usage fast tracked for digital entertainment/streaming – likely fastest growing region in 2022. (IDC) [4]
- Solid performance of 3.4% in October – up 11.3% for 2021. [5]
- Best monthly performers – Nvidia (up 23.4%), Zscaler (21.6%), Arista Networks (19.2%), Datadog (18.2%), Microsoft(17.6%), Tenable Holdings (15.4%) and Crowdstrike (14.7%). [6]
- For 2021 largest contributors – includes Alphabet, Nvidia, Fortinet, Oracle Teradata, Cisco, Salesforce and Dell (see Table below).
- SKYY’s expanded holdings from 50 to 75 - representative of Cloud industry with SaaS holdings (Software as a Service)now largest weighting followed by PaaS and IaaS 14%. [7]
- Now EU Article 8 compliant for Environmental, Social and Governance (ESG). [8]
- Globally diversified - US exposure 74.4%, China 10.3%, Japan 4.2%, Israel 2.8% and Germany 2.6%. [9]
- Equal Weight captures smaller, innovative Cloud companies (holdings average 1.3%). [10]
Please note that all performance figures are showing net data.
Macro Outlook
- IaaS segment likely to enjoy highest CAGR over next few years - increased adoption of multi-cloud/hybrid benefits, adds scalability and fast data accessibility. [11]
- Small & Medium Enterprises (SMEs) to emerge as fastest-growing area through 2028 - high demand due to lower IT hardware and software costs. [12]
- Public clouds expected to grow even more dominant – leaders Amazon Web Services, Microsoft Azure, and Google cementing dominance. [13]
- Enterprise cloud spending, both public and private, increased 34.4% from a year previous, while non-cloud IT spending declined by eight percent. [14]
- Revenue growth to remain explosive through mid-decade, according to Deloitte’s projections, never dipping below 30 percent annually. Global cloud spending will grow seven times faster than overall IT spending through this period. IDC forecasts that worldwide spending on public cloud services and infrastructure will nearly double, to around $500 billion, by 2023. [15]
- Cloud’s fast annualized growth – due to faster 5G and wireless services, allowing for wider adoption. [16]
- Multi-cloud (hybrid) platforms are helping more businesses scale up faster – including in heavily regulated areas such as US banks that were slow adopters (Wells Fargo and Morgan Stanley both signed large Cloud deals recently). [17]
- Cloud spending across healthcare and banking, is seeing a big increase in demand – recent deal by Morgan Stanley and Wells Fargo. [18]
- Enhanced mobile banking experiences and healthcare transformation will soon emerge.
- AI, analytics, security, IoT, and Edge Computing - likely key differentiators among the top cloud service providers, along with serverless and managed services.
- Cloud security firms are benefiting from increased spending in response to the growing number of hacking and cybersecurity attacks. [19]
For 2021, leading contributors for our Cloud Technology ETF are shown below:
|
Holdings
|
% Average Weight
|
Total Return (%)
|
Contribution to Return (%)
|
|
ALPHABET INC-CL A
|
2.59
|
68.94
|
1.61
|
|
NVIDIA CORP
|
2.41
|
95.98
|
1.58
|
|
FORTINET INC
|
1.35
|
72.21
|
1.25
|
|
ORACLE CORP
|
2.32
|
50.57
|
1.05
|
|
MICROSOFT CORP
|
2.35
|
50.07
|
0.97
|
|
TERADATA CORP
|
1.44
|
151.71
|
0.92
|
|
INTEL CORP
|
2.60
|
0.18
|
0.86
|
|
CISCO SYSTEMS INC
|
2.36
|
28.74
|
0.83
|
|
DELL TECHNOLOGIES-C
|
1.75
|
50.08
|
0.73
|
|
DATADOG INC - CLASS A
|
0.62
|
55.02
|
0.72
|
|
ZSCALER INC
|
1.45
|
59.66
|
0.61
|
|
PALO ALTO NETWORKS INC
|
2.13
|
43.25
|
0.19
|
|
MONTNETS TECHNOLOGY-A
|
1.06
|
50.66
|
0.56
|
|
NETAPP INC
|
1.51
|
38.28
|
0.52
|
|
SALESFORCE.COM INC
|
2.22
|
34.67
|
0.51
|
For illustrative purposes only. Please note that all performance figures are showing net data.
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
2Y
|
3Y
|
SI
|
|
HAN-GINS Cloud Technology UCITS ETF
|
3.43%
|
-0.17%
|
2.66%
|
11.33%
|
27.08%
|
54.39%
|
83.97%
|
70.99%
|
|
Solactive Cloud Technology
|
3.48%
|
-0.04%
|
2.90%
|
11.82%
|
27.76%
|
56.10%
|
87.00%
|
73.73%
|
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 31/10/2021. Please note that all performance figures are showing net data.
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