Latest Cloud Technology ETF Monthly Report | HANetf

Cloud Technology ETF Key Takeaways | February

  • Cloud Tech ETF returns have again jumped in February – follows flat January & 41.3% return in 2023.
  • SKYY’s 100 holdings offer broad Global Cloud ecosystem coverage.  
  • Continues to offer lower P/E, P/B & P/S valuation metrics vs competitors including Nasdaq (end Dec 2023).
  • Top 5 & 10 weights far smaller than competitors (under 8% & 15% respectively).
  • Top 2024 contributors include NVIDIA, CROWDSTRIKE, FASTLY, PALO ALTO NETWORKS, ZSCALER INC, NUTANIX INC, ARISTA NETWORKS and SAP.
  • US weight 79.7%; Non-US mix 20.3%.
  • Globally diversified - China 6.7%, UK 3.2%, Japan 2.6%, Israel 2.2% (Source: HANetf Jan 2024, SKYY Fact Sheet). 
  • Holdings very representative across SaaS, PaaS and IaaS.
  • Only Article 8 ESG complaint Cloud ETF and using a Global benchmark. (See Sustainability Disclosure).
  • Asian Cloud still fastest growing per capita via speedy 5G – Mobile Gaming fastest growing gaming area

 

Source of all data: Gins Global / Solactive. Data as of 31.01.2024. Additional sources available upon request. 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. 

Marco Outlook

  • Cloud adoption embraced by highly regulated industries (Banks, Insurers, Healthcare & Public Sector/Governments).
  • AI boosting the size of Cloud spend globally.
  • Cloud industry continues to grow at around 20% annually.
  • Impressive recent IaaS Cloud earnings beats from Microsoft’s Azure. Cloud growth big reason for $3tn market cap.
  • WFH, Gaming & AI huge tailwinds boosting Cloud Computing.
  • ChatGPT & BARD AI services being integrated into Cloud – boosting demand/usage by AWS, Azure, Google & Oracle.
  • Cloud’s ongoing cost savings – boosting usage during inflationary times.
  • Biggest purchasers of Nvidia chips are Cloud providers – AWS (Amazon), Azure (Microsoft), Google & Oracle.  
  • $2tn new Cloud Revenues expected by 2030 likely (see chart). Large players still dominate.
  • 50% of Corporate IT spending expected to move to the Cloud by 2025. 
  • AI, Cloud, Social Media & Gaming converging –$75bn Microsoft-Activision gaming deal.
  • Just 25% of corporate workloads in the Public Cloud – huge upside.
  • Asia highest Cloud usage per capita globally. (Digital Entertainment & Corporate)
 

Source of all data: Gins Global / Solactive. Data as of 31.01.2024. Additional sources available upon request. 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. 

Cloud Technology ETF Top Contributors – January

HOLDINGS

Contribution (%)

Return (%)

Average Weight (%)

NVIDIA CORP

0.25%

24.24%

1.18%

JUNIPER NETWORKS INC

0.21%

25.37%

1.15%

CROWDSTRIKE HOLDINGS INC

0.21%

14.56%

1.38%

NUTANIX INC

0.21%

17.84%

1.34%

COMMVAULT SYSTEMS INC

0.17%

17.12%

1.03%

PALO ALTO NETWORKS INC

0.15%

14.80%

1.13%

DOMO INC - CLASS B

0.15%

15.88%

1.02%

SAP SE

0.14%

15.29%

1.07%

FASTLY INC - CLASS A

0.13%

13.03%

1.07%

GITLAB INC-CL A

0.13%

12.94%

1.10%

INTERNATIONAL BUSINESS MACHINES CORP

0.13%

12.30%

1.11%

COUCHBASE INC

0.12%

11.01%

1.18%

ARISTA NETWORKS INC

0.12%

9.84%

1.23%

PURE STORAGE INC - CLASS A

0.12%

12.14%

1.04%

INTAPP INC

0.12%

13.31%

1.02%

VERINT SYSTEMS INC

0.10%

9.84%

0.91%

RADWARE LTD

0.10%

9.46%

1.07%

DELL TECHNOLOGIES INC - C

0.09%

8.34%

1.19%

KINAXIS INC

0.09%

10.09%

0.91%

RESMED INC-CDI

0.09%

10.40%

1.04%

TREND MICRO INC

0.09%

11.69%

1.05%

SERVICENOW INC

0.09%

8.34%

1.11%

ZSCALER INC

0.08%

6.37%

1.21%

SALESFORCE INC

0.07%

6.82%

1.10%

 

Source of all data: Solactive. Past performance is no guarantee of future performance. 

Cloud Technology ETF Performance
 
As of 31.01.2024

 

1M

3M

6M

YTD

12M

2Y

3Y

SI

HAN-GINS Cloud Technology Equal Weight UCITS ETF

-0.83%

20.13%

6.17%

-0.83%

26.65%

-4.38%

-6.01%

46.75%

Solactive Cloud Technology Index (NTR)

-0.81%

20.47%

6.58%

-0.81%

27.53%

-3.23%

-5.09%

49.95%

 

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/01/2024

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.

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