Cloud Technology ETF Monthly Report | November

23 November 2023

Cloud Technology ETF Key Takeaways | November

  • SKYY’s 100 holdings offers broadest Global Cloud ecosystem coverage.  
  • Equal Weight approach ensures 1% weight; at Rebalance twice annually. MegaCap weight under 10%.
  • 3yr lows for Price/Book, Price/Sales & Price/Earnings ratios. Far lower than Nasdaq & competing Tech indices.
  • Top 5 & 10 weightings remain far smaller than competitors (under 7% & 14% respectively).
  • Largest 2023 contributors, all returned above 30% - with most well over 50% – NVIDIA CORP 179.1%, FASTLY INC 79.1, PALO ALTO NETWORKS 74.2%, DELL TECHNOLOGIES 66.4%, CROWDSTRIKE 67.9%, ARISTA NETWORKS 65.1%, ADOBE 58.1%, SALESFORCE 51.5%, SERVICENOW 49.9, SPLUNK INC 70.9, ADVANCED MICRO DEVICES 63.3%, ZSCALER 41.8%, ALPHABET 40.6%, NUTANIX 38.9%, MICROSOFT 41.0%, INTEL 38.1% and APPLE 31.4%.
  • US just 79% weight; Non-US mix 21%.
  • Globally diversified - China 8.3%, UK 3.1%, Japan 2.3%.
  • Holdings very representative of Global Cloud ecosystem - SaaS, PaaS and IaaS.
  • Only Article 8 ESG complaint Cloud ETF and using a Global benchmark (US 81% weight).
  • Global Benchmark benefit – Asia boost as biggest per capital Cloud users.
  • 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 31.10.2023. 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. 

 

Marco Outlook

  • Cloud Tech ETF up 16.7% in 2023 & 13.1% over 1yr.
  • Cloud, Social Media & Gaming converging - $75bn Microsoft-Activision gaming deal.
  • AI services ChatGPT & BARD integrating into Cloud - boosting demand/usage by AWS, Azure, Google & Oracle.
  • Positive Cloud growth & 3rd qtr earnings form most leading players – Microsoft most impressive.
  • 50% of Corporate IT spend expected to move to Cloud by 2025. 
  • AI, WFH & Megatrend boosts Digital Revolution - converging around Cloud Computing.
  • Just 25% of corporate workloads in the Public Cloud – huge upside.
  • Cloud’s ongoing cost savings - boosting usage during Recessionary times.
  • $1tn new Cloud Revenues expected by 2027. Large players still dominate.
  • Highly regulated players see big Cloud adoption (Banks, Insurers, Healthcare & Public Sector/Governments).
  • Cloud growing faster than most Tech areas; likely 5X size of Cybersecurity in next few years.
  • Asia highest Cloud usage per capita globally. (Digital Entertainment & Corporate)

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. When you invest in ETFs your capital is at risk.

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For illustrative purposes only.

 

Cloud Technology ETF Top Contributors – October

HOLDINGS

Average Weight 
 (%)

Total Return (%)

Contribution to Return (%)

MICROSTRATEGY INC-CL A

1.11

28.50

0.32

AVEPOINT INC

1.32

14.00

0.19

DIGITAL CHINA GROUP CO LTD-A

1.14

12.32

0.14

VARONIS SYSTEMS INC

1.25

10.84

0.14

VNET GROUP INC

1.07

9.35

0.10

ARISTA NETWORKS INC

1.23

6.69

0.08

MONTNETS CLOUD TECHNOLOGY

1.18

4.80

0.06

NUTANIX INC

1.37

4.11

0.06

CROWDSTRIKE HOLDINGS INC

1.28

4.26

0.05

MICROSOFT CORP

1.02

5.07

0.05

SERVICENOW INC

1.04

4.79

0.05

CLIMB GLOBAL SOLUTIONS INC

0.97

4.93

0.05

SAP SE

1.01

3.88

0.04

SEAGATE TECHNOLOGY PLC

1.15

3.11

0.04

INTEL CORP

1.12

2.93

0.03

IBM

1.11

2.73

0.03

PALO ALTO NETWORKS INC

1.03

2.64

0.03

COMPUTACENTER PLC

1.13

2.26

0.03

ADOBE INC

1.16

2.10

0.02

INTAPP INC

0.89

2.70

0.02

EQUINIX INC

0.97

2.38

0.02

SPLUNK INC

1.47

0.66

0.01

INTERNET INITIATIVE JAPAN INC

0.92

0.77

0.01

 

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

Cloud Technology ETF Performance
 
As of 31.10.2023

 

1M

3M

6M

YTD

12M

2Y

3Y

SI

HAN-GINS Cloud Technology Equal Weight UCITS ETF  

-5.23%

-11.62%

7.84%

16.66%

13.12%

-28.56%

-9.22%

22.15%

Solactive Cloud Technology Index (NTR)

-5.20%

-11.53%

8.14%

17.27%

13.82%

-27.82%

-8.46%

24.47%

 

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/10/2023

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.

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