Key Takeaways: Cloud Technology ETF
- Global cloud services spend up 33%, hit $62.3bn in Q2 2022. [1]
- Cloud infrastructure services continued to be in high demand in Q2 2022.
- Driven by demand for data analytics, machine learning, data center consolidation, application migration, cloud-native development and service delivery.
- Expenditure $6bn more than in the previous quarter and $15bn more than in Q2 2021. The top three vendors in Q2 2022, namely Amazon Web Services (AWS), Microsoft Azure and Google Cloud, together accounted for 63% of global spending in Q2 2022 and collectively grew 42%. (Source – same as above)
- Top cloud vendors accelerating partnerships with software companies - Microsoft new services, migrating more Oracle workloads to Azure.
- Over 50% of Corporate IT spending - shifting to Cloud by 2025. [2]
- $1.3tn of Revenues - to move to Cloud within 3 years.
- Big Adoption rates - Hospitals, Gaming/Digital Entertainment, Social Media & Financial Services.
- Only 25% of workloads in the Public Cloud – huge growth opportunity.
- WFH/Hybrid work driving shift towards Cloud platforms and cost efficiencies/savings.
- Ultra-fast networks, 5G and Wi-Fi 6E – allowing more data to be streamed from Cloud.
- Global Cloud gaming expected to hit $57bn by 2027, a CAGR of 15.7%. [3]
Source of all data: GinsGlobal. 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. When you invest in ETFs your capital is at risk.
Macro Outlook
- Top 5 & 10 weightings are less than half of key competitors. (9.7% and 18.1% respectively)
- SKYY’s 75 holdings, low risk Equal Weighted approach ensures less MegaCap exposure.
- SKYY has the lowest PE ratios, Price/Book and Price/Sales numbers – versus competitors.
- SKYY holdings and weights, representative of Global Cloud industry - SaaS, PaaS and IaaS.
- SKYY year to date outperforming key Cloud competitors.
- Globally diversified - US 82.1%, China 8.5%, Japan 3.0%.
- Cloud revenue growth of 20% expected in 2022 (see chart above) – hitting almost $500bn.
- Highly regulated industries, Healthcare (Hospitals) and Financial Services embracing Cloud – big deals at HCA Hospital Group with Google - plus JP Morgan, Wells Fargo, Morgan Stanley and Nasdaq recently.
- Best September performers Intapp and Nutanix up 29% and 20%, despite tough market - Table below.
- Big Tech cloud players (Microsoft & Google) buying gaming companies – see Cloud Gaming boost. [4]
- Asian Cloud fast tracked through speedy 5G connections - Mobile and Online Gaming fastest growing gaming area. [5]
Source of all data: GinsGlobal.
HAN-GINS Cloud Technology UCITS ETF – Performance (As of 30.09.22)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
2Y
|
3Y
|
SI
|
|
HAN-GINS Cloud Tech UCITS ETF
|
-11.66%
|
-12.57%
|
-31.61%
|
-40.12%
|
-38.84%
|
-28.61%
|
-5.48%
|
1.11%
|
|
Solactive Cloud Technology Index (NTR)
|
-11.63%
|
-12.46%
|
-31.50%
|
-39.92%
|
-38.58%
|
-28.46%
|
-4.72%
|
2.36%
|
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 30/09/2022 Please note that all performance figures show net data.
Learn more about our cloud technology ETF.