Tech Megatrends ETF Key Takeaways[1] | September
- ITEK benefits from global digital convergence – how we live, work, and play.
- Tech Megatrend ETF up 30% in 2023; boosted by AI, Blockchain & EVs.
- Global mix: US 60.1%, China 15.2%, Japan 8.5%, Canada, 2.3%, South Korea 1.8% & Australia 3.3%. (Nasdaq 100% US.)
- Includes 15 leaders for each subtheme – all established firms.
- Top holdings less concentrated than Nasdaq & Tech funds; Top 5 holdings (7.98%); Top 10 (14.65%).
- MegaCap weight just 17.6% (Nasdaq at 65.2%) – source Morningstar.
- ITEK well diversified - Underweight FAANGS.
- Equal weight across 8 subthemes (12.5% per theme; 120 holdings).
- Best Subthemes YTD: Blockchain dominated, Robotics-AI 2nd, Cloud & Digital Entertainment tied for 3rd, followed by Future Cars.
- Global benchmark helped with 27% Asia weight (Japan, China, South Korea) vs Nasdaq 100% US.
- ITEK broader than GICS classification - includes EVs, Gaming/Streaming, Social Media (excluded by Tech Indices).
- Best performing monthly Holdings - all Subthemes represented.
- Lower overall P/E ratio, Price/Book & Price/Sales versus Nasdaq. (Morningstar)
- Fast-tracking adoption rates across 8 subthemes.
Macro Outlook
- Tech positive rerating as US inflation falls & Fed likely to pause; quality Megatrend holdings boosted.
- Asia dominating global gaming.
- Gaming, Cloud, Social Media, Cybersecurity converging – benefiting from WFH trends.
- AI usage across Megatrend space - boosting Big Tech valuation. Over $2trn spending in AI expected within decade.
- Online Gaming growth across Mobile - boosting Digital Entertainment.
- Social Media seeing boost - new Meta Threads App versus X/Twitter.
- Genomics mainstream now - (Gene Editing & CRISPR), targeting cancer & key diseases.
- US$1tn Infrastructure Bill boosts rollout of EV Charging Stations.
- Cloud Tech sees fast adoption of OpenAI - ChatGPT & BARD AI – speedy corporate demand.
- Onshoring to US/EU from China - positive for Robotics & Factory Automation.
- EVs 10% of Global New Cars Sales in 2022. US expected to hit 10% within 2 years.
- US laws ban traditional cars by 2035 & new $7,500 subsidies.
- Video Streaming expected to double in 3 years.
Source of all data: Gins Global / Bloomberg as of 31/08/2023. 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.
Subtheme Returns - August
|
Contribution
|
Total Return (%)
|
Average Weight (%)
|
Category Performance (%)
|
|
Blockchain
|
-5.19
|
17.54
|
-29.60
|
|
Robotics & Automation
|
-0.79
|
13.38
|
-5.88
|
|
Genomics
|
-0.52
|
10.27
|
-5.05
|
|
Cyber Security
|
-0.17
|
11.48
|
-1.50
|
|
Future Cars
|
-1.25
|
11.91
|
-10.49
|
|
Digital Entertainment
|
-0.49
|
10.74
|
-4.52
|
|
Cloud Computing
|
-0.25
|
13.03
|
-1.93
|
|
Social Media
|
-0.79
|
11.65
|
-6.74
|
Source of all data: Solactive. Past performance is no guarantee of future performance.
Largest Contributors - August
|
HOLDINGS
|
Index Category
|
Average Weight (%)
|
Total Return (%)
|
Contribution to Return (%)
|
|
QUALYS INC
|
Cyber Security
|
0.89
|
12.14
|
0.11
|
|
CISCO SYSTEMS INC
|
Cloud Computing
|
0.80
|
10.20
|
0.08
|
|
NVIDIA CORP
|
Robotics / Automation
|
1.39
|
5.62
|
0.08
|
|
VMWARE INC-CLASS A
|
Cloud Computing
|
1.04
|
7.07
|
0.07
|
|
OKTA INC
|
Cyber Security
|
0.73
|
8.65
|
0.06
|
|
SEAGEN INC
|
Genomics
|
0.78
|
7.45
|
0.06
|
|
NEXON CO. LTD
|
Digital Entertainment
|
0.62
|
6.47
|
0.04
|
|
MEITU INC
|
Social Media
|
0.63
|
6.13
|
0.04
|
|
DANAHER CORP
|
Genomics
|
0.74
|
3.90
|
0.03
|
|
ADOBE INC
|
Cloud Computing
|
1.16
|
2.41
|
0.03
|
|
ALPHABET INC-CL A
|
Social Media
|
1.04
|
2.60
|
0.03
|
|
SPOTIFY TECHNOLOGY SA
|
Digital Entertainment
|
0.86
|
3.05
|
0.03
|
|
ORACLE CORP
|
Cloud Computing
|
0.95
|
2.70
|
0.03
|
|
BANDAI NAMCO HOLDINGS INC
|
Digital Entertainment
|
0.80
|
2.69
|
0.02
|
|
NEXTDC LTD
|
Cyber Security
|
0.99
|
2.07
|
0.02
|
|
SAP SE
|
Cloud Computing
|
0.86
|
1.94
|
0.02
|
|
IBM CORP
|
Cloud Computing
|
0.79
|
1.84
|
0.01
|
|
CHECK POINT SOFTWARE
|
Cyber Security
|
0.76
|
1.80
|
0.01
|
|
THERMO FISHER SCIENTIFIC
|
Genomics
|
0.72
|
1.54
|
0.01
|
|
CROWDSTRIKE HOLDINGS
|
Cyber Security
|
0.89
|
0.85
|
0.01
|
Source of all data: Solactive. Past performance is no guarantee of future performance.
Tech Megatrends ETF Performance
As of 31.08.2023
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
2Y
|
3Y
|
SI
|
|
HAN-GINS Tech Megatrends Equal Weight UCITS ETF
|
-10.56%
|
3.30%
|
14.83%
|
30.03%
|
10.78%
|
-32.82%
|
-4.28%
|
44.44%
|
|
Solactive Innovative Technologies Index (NTR)
|
-10.54%
|
3.47%
|
15.37%
|
30.80%
|
11.50%
|
-32.66%
|
-3.62%
|
46.89%
|
Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/08/2023
Performance before inception is based on back tested data. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. 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. When you invest in ETFs and ETCs, your capital is at risk.
[1] Sources available upon request.