- Tech stocks rebounded strongly in October, ITEK gaining over 10%. [1]
- President Biden’s $1 trillion Infrastructure plan passed, big boost for EV vehicles. [2]
- ITEK up 18.1% for 2021 and almost 47% over one year. [3]
- Top subtheme performers in 2021 are led by Blockchain up 52.7%, Genomics, 18.7%, Robotics 21.7%. Cybersecurity 16.6% and Future Cars 23.3%. [4]
- Top 35 performing holdings represent all 8 subthemes - all producing 30%+ gains in 2021. Led by BioNTech (312%), Fortinet (126.5%), Galaxy Digital (100.8%), Nvidia (95.9%), Alphabet (68.9%) Riot (60.2%) and Tesla (57.9%). [5]
- Global Cloud spending is expected to double to $1.3 trillion by 2025 - annualized growth rate (CAGR) of 17%. [6]
- ITEK’s global mix boosting gains - US weighting at 54.2%, China 16.0%, Canada 7.3%, Japan 5.0%, Germany 4.3%. [7]
- 110 holdings, Equal Weight across 8 subthemes and per holding. [8]
- Top 5 holdings equal just 8%, and Top 10 only 14% of its portfolio. [9]
- Unlike Nasdaq and other Tech indices which are overweight Big Tech; ITEK’s FAANG weight is under 6% - versus 40% in the Nasdaq 100. [10]
Macro Outlook
COVID continues to be a huge gamechanger for both the Technology & Healthcare industries. It has fast-tracked spending and demand by at least five years. Tech players continue to be the biggest beneficiary of the Pandemic. We see COVID continuing to propel the Digital Revolution forward with recent 3rd quarter record Big Tech earnings continuing into the 4th quarter. [11]
Remote WFH behaviours are not changing – as workers adapt to a hybrid work schedule. Many smaller Cloud, Cybersecurity and Social Media players are also benefiting from the shift. Most corporate Tech budgets are shifting to Cloud spending – as hardware budgets have been dramatically cut. [12]
Cloud computing market to doubling 2025, exceeding $1 trillion. [13]
Digital Entertainment including online movies and gaming are seeing huge usage – with Asia likely to be the fastest growing region for some years. [14]
Cloud is approaching 20% annualised growth – due to faster 5G and wireless services, allowing for wider cloud adoption. 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. [15]
Demand for cybersecurity protection is expanding – particularly in the US boosted by recent large hack attacks and WFH trends. More cybersecurity data breaches occurred in 2020, than the prior 15 years. [16]
Blockchain is an exciting new area that will provide further trust in Internet-based transactions. We see it reducing the cost of trade globally, via the use of transparent shared/distributed ledgers. [17]
In Robotics, we also see Asia enjoying the largest share of the industrial robotics market over the next 5 years – due to the increased industrialisation and shortages of local workforce. Many US manufacturers are onshoring their plants - creating huge demand for industrial robots, often cheaper than employing US workers. [18]
In the Electric Vehicle (EV) space, the new Biden polices shows the US intent on catching China the world’s current EV leader. Biden’s spending plans include huge upgrades for EV charging stations and infrastructure. The US government is also banning the sale of non EV cars from 2035 - fast-tracking EV adoption rates. [19]
Year to Date (October 31st 2021)
|
Subtheme Contribution
|
Total Return (%)
|
% Average Weight
|
% Performance of Theme
|
|
Genomics
|
2.5
|
13.6
|
18.7
|
|
Cyber Security
|
2.1
|
12.7
|
16.6
|
|
Social Media
|
0.5
|
10.4
|
4.7
|
|
Future Cars
|
3.0
|
12.7
|
23.3
|
|
Cloud Computing
|
2.1
|
12.8
|
16.8
|
|
Robotics & Automation
|
3.1
|
14.0
|
21.7
|
|
Digital Entertainment
|
-0.6
|
12.7
|
-4.8
|
|
Blockchain
|
5.5
|
10.4
|
52.7
|
For illustrative purposes only. Source: Bloomberg / Solactive. Data as of 31.10.2021. Please note that all performance figures are sowing net data.
Equally Weighted ETF and Index Performance (As of 31.10.2021)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
2Y
|
3Y
|
SI
|
|
HAN-GINS Tech Megatrend UCITS ETF
|
10.28%
|
5.70%
|
5.02%
|
18.14%
|
46.82%
|
105.92%
|
135.81%
|
111.08%
|
|
Solactive Innovative Technologies Index (NTR)
|
10.34%
|
5.81%
|
5.28%
|
18.49%
|
47.42%
|
107.81%
|
140.14%
|
113.93%
|
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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