- The Pandemic has led to increased digitalization – boosting remote working and online entertainment.
- Cloud spending rising to $500bn within next 2 years. [1]
- ITEK’s March rebalance is in line with Article 8 screening.*
- Diversified 114 Equal Weightings limited the fallout from higher rate cycle and Ukraine War volatility.
- Top contributors this month - represent Blockchain (7.1% up), Social Media (3.3%) and Genomics (0.8%). Future Cars fell 4.9%, despite oil spiking over $100/barrel. EV car adoption rates continue to grow.
- Best performing holdings were dominated by Blockchain: Galaxy Digital 30.9%, Cipher Mining 24.2%, Riot Blockchain 22.9% and Cleanspark 22.5%
- ITEK’s global mix reduces volatility - US weighting 61.1%, China 14.1%, Canada 3.2%, Japan 6.4%, South Korea 2.8%.
- Top 5 holdings equal just 5.5%, and Top 10 only 10.6% of the portfolio. (Solactive source)
- Unlike Nasdaq (100% US focused and Top 5 holdings almost 40%) - ITEK’s FAANG weight is under 8% and all holdings are equal weighted (Source: Morningstar)
Source of all data: Solactive. Past performance is no guarantee of future performance. Please note all figures are showing net data.
Macro Outlook
- Microsoft’s $75bn acquisition of Gamer, Activision Blizzard - rerated Digital Entertainment stocks. [2]
- Cybersecurity stock rerated due to increased US cyber-attacks SolarWinds, Colonial Pipeline and Meat factories.
- Cyber losses grew to $1.8bn (2020), a 50% increase compared to 2019 [3]
- 30,000 websites were hacked daily - every 39 seconds (2020) [4]
- Biden’s stimulus/budget Boosting spending on Future Cars ($174bn), Cybersecurity & Genomics (tackling cancer & mainstream diseases) [5]
- Google acquired Mandiant for $5.4bn - boosting its Cloud security capability. [6]
- Cloud computing set to double revenues by 2028 – boosted by WFH & Cybersecurity. [7]
- Gaming most dynamic Digital Entertainment category - 4X larger than Hollywood movies. [8]
- Netflix [9] and Sony [10] both acquired Gaming companies in the past few months.
- China EV sales more than double in 2021 – up 154%. [11]
March - Subtheme Returns
|
Contribution
|
Total Return (%)
|
% Average Weight
|
% Performance of Category
|
|
Blockchain
|
0.89
|
12.46
|
7.14
|
|
Robotics & Automation
|
-1.03
|
14.14
|
-7.28
|
|
Genomics
|
0.11
|
13.76
|
0.80
|
|
Cybersecurity
|
-0.22
|
13.55
|
-1.62
|
|
Future Cars
|
-0.63
|
12.83
|
-4.91
|
|
Digital Entertainment
|
-0.86
|
12.53
|
-6.86
|
|
Cloud Computing
|
-0.12
|
14.67
|
-0.82
|
|
Social Media
|
0.19
|
5.72
|
3.32
|
Source: Solactive (31.03.2022) For illustrative purposes only. Please note that all performance figures are showing net data.
Equally Weighted ETF and Index Performance (As of 31.03.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
1Y
|
2Y
|
3Y
|
SI
|
|
HAN-GINS Tech Megatrend UCITS ETF
|
-1.08%
|
-16.15%
|
-15.02%
|
-16.15%
|
-16.71%
|
69.91%
|
61.12%
|
68.82%
|
|
Solactive Innovative Technologies Index (NTR)
|
-1.84%
|
-16.73%
|
-15.49%
|
-16.73%
|
-16.98%
|
70.54%
|
61.81%
|
70.29%
|
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 31/03/2022. Please note that all performance figures are showing net data.
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