- Pandemic fast-tracked WFH digitalization – boosting remote working and online entertainment.
- Games market generated US$175.8bn in 2021, with 3 billion players. [1]
- ITEK’s March rebalance is in line with Article 8 screening. [2]
- 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.
- Best performing holdings were dominated by Social Media: RenRen ADR 30.7% and Twitter 26.7%.
- NetEase up 6.9% (Dig Entertainment), BYD Ltd 3.1% (Future Cars), Evolution Gaming 2.4% and iBM 1.7% (Cloud) also posted gains.
- Most holdings were negative - with Blockchain the weakest subtheme off 38.0%, followed by Digital Entertainment 16.1% and Robotics/Automation off 15.8%.
- ITEK’s global mix reduces volatility - US weight 60.2%, China 14.6%, Germany 2.7%, Japan 6.8%, South Korea 3.0%.
- Top 5 holdings equal just 6.5%,
and Top 10 under 12% of the portfolio. (Source: Solactive)
- Unlike Nasdaq (100% US focused and
Top 5 holdings almost 40%) - ITEK’s FAANG weight is under 8% and all holdings
are equal weighted. [3]
Source of all data: Solactive. Past performance is no guarantee of future performance. Please note all figures are showing net data.
Macro Outlook
- Enterprise Cloud spending (infrastructure) hit $178bn in 2021, 37% increase over 2020. [4]
- Cheaper Tech stocks – we expect to see more M&A activity in 2022 due to lower multiples.[5]
- Microsoft’s $75bn acquisition of Activision Blizzard - rerated Gaming/Digital Entertainment stocks. [6]
- Cybersecurity stocks rerated due to increased attacks on SolarWinds, Colonial Pipeline and Meat factories. [7]
- Cyber losses grew to $1.8bn (2020), a 50% increase compared to 2019 [8]
- Google acquired Mandiant for $5.4bn - boosting its Cloud security capability. [9]
- Cloud computing set to double revenues by 2028 – boosted by WFH & Cybersecurity. [10]
- Gaming most dynamic Digital Entertainment category - 4X larger than Hollywood movies. [11]
- Netflix [9] and Sony [10] both acquired Gaming companies in the past few months. [12]
- China EV sales more than double in 2021 – up 154%.[13] Oil prices above $100/barrel could fast track EV adoption.
April - Subtheme Returns
|
Contribution
|
Total Return (%)
|
% Average Weight
|
% Performance of Category
|
|
Blockchain
|
-4.74
|
12.49
|
-37.95
|
|
Robotics & Automation
|
-1.98
|
12.57
|
-15.75
|
|
Genomics
|
-1.34
|
14.35
|
-9.34
|
|
Cybersecurity
|
-1.46
|
13.82
|
-10.56
|
|
Future Cars
|
-1.62
|
13.08
|
-12.39
|
|
Digital Entertainment
|
-2.04
|
12.69
|
-16.08
|
|
Cloud Computing
|
-1.59
|
13.51
|
-11.77
|
|
Social Media
|
0.08
|
6.57
|
1.22
|
Source of all data: Solactive. Past performance is no guarantee of future performance
Equally Weighted ETF and Index Performance (As of 31.04.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
1Y
|
2Y
|
3Y
|
SI
|
|
HAN-GINS Tech Megatrend UCITS ETF
|
-14.95%
|
-17.07%
|
-34.45%
|
-28.68%
|
-31.16%
|
26.61%
|
33.20%
|
43.59%
|
|
Solactive Innovative Technologies Index (NTR)
|
-14.94%
|
-17.67%
|
-34.85%
|
-29.17%
|
-31.41%
|
26.79%
|
33.84%
|
44.85%
|
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 30/04/2022. Please note that all performance figures are showing net data.
* The SFDR classifications for the funds are documented in their respective supplements and approved by the Central Bank of Ireland. The supplement for each fund can be found on their respective product page.
Learn more about our Equally Weighted ETF