- Big Tech's resilient 2nd Quarter earnings powered by Cloud 30%+ revenue gains- Google, Microsoft & Amazon. [1]
- Over 50% of Enterprise IT Spending expected to shift to the Cloud by 2025. [2]
- Netflix and Sony both acquired Gaming companies in the past few months. [3]
- We believe US inflation numbers will hit ceiling 3rd qtr and expect Tech to bounce back, particularly ITEK holdings with strong earnings and balance sheets. [4]
- SaaS Software as a Service continuing to receive ~50% of Cloud spending. [5]
- Cheaper Tech stocks – we expect more M&A activity in 2022-23 due to lower PE multiples. [6]
- California & US government banning sale of non EV cars from 2035 - fast-tracking EV adoption rates.
- US expected to catch up with China EV adoption rates. (see chart overleaf).
- Cybersecurity attacks continue to grow globally – a necessity for corporate spending. [6]
- 2nd Qtr Earnings better than expected, with 75% of S&P 500 companies beating estimates.
- Global EV car market share – being boosted by $100/barrel oil. (China, US & EU)
- AI & 5G Boosting Edge computing & Cloud spending. [7]
- Multi & Hybrid Cloud Increasingly popular due to open architecture.
Source of all data: Gins Global. Please note that all performance figures are showing net data. Past performance is not indicative of future performance and when you invest in ETFs, your capital is at risk.
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Macro Outlook
- ITEK has far lower overall P/E, Price/Book and Price/Sales ratios versus Nasdaq.
- P/B and P/S ratios almost half of Nasdaq. P/E at 19 vs Nasdaq at 25.
- Over 1, 2 & 3 year periods ITEK significantly outperformed ARK, with far lower risk.
- ITEK far lower concentrated risk than Nasdaq – Top 5 holdings (8% vs 39%); Top 10 (14% vs 53%).
- Equal weight underweights FAANGS; Nasdaq has 7X more Megacap exposure.
- ITEK is under 60% US weighted – unlike 100% for Nasdaq.
- Top subtheme contributors this month - represent Cybersecurity, Blockchain and Social Media.
- ITEK holds top 15 established players in each subtheme.
- ITEK’s global mix reduces volatility - US 59.3%, China 16.0%, Japan 7.3%, South Korea 3.2% & Netherlands 2.6%.
Source: https://blog.checkpoint.com/2021/10/06/as-battle-against-cybercrime-continues-during-cybersecurity-awareness-month-check-point-research-reports-40-increase-in-cyberattacks/
August - Subtheme Returns
|
Contribution
|
Total Return (%)
|
% Average Weight
|
% Performance of Category
|
|
Blockchain
|
0.04
|
7.13
|
0.56
|
|
Robotics & Automation
|
-0.94
|
13.81
|
-6.81
|
|
Genomics
|
-1.14
|
16.39
|
-6.96
|
|
Cybersecurity
|
0.32
|
12.42
|
2.58
|
|
Future Cars
|
-1.01
|
15.14
|
-6.67
|
|
Digital Entertainment
|
-0.59
|
12.31
|
-4.79
|
|
Cloud Computing
|
-0.46
|
15.51
|
-2.79
|
|
Social Media
|
0.08
|
7.17
|
1.12
|
Source of all data: Solactive. Past performance is no guarantee of future performance
August - Largest Contributors
|
HOLDINGS
|
Index Category
|
Average Weight (%)
|
Total Return (%)
|
Contribution to Return (%)
|
|
TRADE DESK INC/THE -CLASS A
|
Digital Entertainment
|
0.8
|
39.33
|
0.22
|
|
CLOUDFLARE INC - CLASS A
|
Cloud Computing
|
0.64
|
24.34
|
0.11
|
|
QUALYS INC
|
Cyber Security
|
1.29
|
24.18
|
0.25
|
|
PINTEREST INC- CLASS A
|
Social Media
|
1.01
|
18.28
|
0.16
|
|
CIPHER MINING INC
|
Blockchain
|
0.73
|
16.86
|
0.11
|
|
HIVE BLOCKCHAIN TECH
|
Blockchain
|
0.59
|
13.44
|
0.07
|
|
PALO ALTO NETWORKS INC
|
Cyber Security
|
0.99
|
11.56
|
0.11
|
|
CYBERARK SOFTWARE LTD
|
Cyber Security
|
0.95
|
10.87
|
0.09
|
|
SENTINELONE INC -CLASS A
|
Cyber Security
|
0.72
|
9.9
|
0.06
|
|
ARGO BLOCKCHAIN PLC
|
Blockchain
|
0.59
|
8.64
|
0.05
|
|
TREND MICRO INC
|
Cyber Security
|
1.24
|
7.84
|
0.08
|
|
WEIBO CORP-SPON ADR
|
Social Media
|
0.84
|
7.65
|
0.07
|
|
CLEANSPARK INC
|
Blockchain
|
0.5
|
7.27
|
0.03
|
|
CORTEVA INC
|
Genomics
|
1.29
|
7.01
|
0.08
|
|
BAIDU INC-CLASS A
|
Cloud Computing
|
1.1
|
6.81
|
0.07
|
|
ALIBABA GROUP - SP ADR
|
Cloud Computing
|
0.99
|
6.76
|
0.07
|
Past performance is no guarantee of future performance. Source of all data: Solactive.
Equally Weighted ETF and Index Performance (As of 31.08.2022)
|
|
1M
|
3M
|
6M
|
YTD
|
1Y
|
2Y
|
3Y
|
SI
|
|
HAN-GINS Tech Megatrend UCITS ETF
|
-3.78%
|
-6.84%
|
-23.60%
|
-35.23%
|
-39.35%
|
-13.59%
|
27.16%
|
30.39%
|
|
Solactive Innovative Technologies Index (NTR)
|
-3.73%
|
-6.74%
|
-24.06%
|
-35.58%
|
-39.60%
|
-13.56%
|
28.0%
|
31.74%
|
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 31/08/2022. 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