Cloud Technology ETF Monthly Report | December

21 December 2023

Cloud Technology ETF Key Takeaways | December

  • SKYY’s 100 holdings offers broadest Global Cloud ecosystem coverage.  
  • Equal Weight ensures 1% weight at Rebalance twice annually. MegaCap weight under 10%.
  • 3yr lows for Price/Book, Price/Sales & Price/Earnings ratios.  
  • Remains far lower than Nasdaq & competing Tech indices.
  • Top 5 & 10 weights far smaller than competitors (under 7% & 14% respectively).
  • Top 2023 contributors, all returned above 50% – NVIDIA, FASTLY, PALO ALTO NETWORKS, DELL TECHNOLOGIES, CROWDSTRIKE, ARISTA NETWORKS, ADOBE, SALESFORCE%, AMD & SPLUNK.
  • US just 79% weight; Non-US mix 21%.
  • Globally diversified - China 7.9%, UK 3.2%, Japan 2.5%.
  • Holdings very representative of Global Cloud ecosystem - SaaS, PaaS and IaaS.
  • Only Article 8 ESG compliant Cloud ETF and using a Global benchmark, as confirmed by the ETF database and SKYY 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 30.11.2023. 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 Tech ETF up over 30% in 2023.
  • AI services ChatGPT & BARD being integrated into Cloud – boosting demand/usage by AWS, Azure, Google & Oracle.
  • Biggest purchasers of Nvidia chips are Cloud providers – AWS (Amazon), Azure (Microsoft), Google & Oracle.  
  • Upwards of 50% of all Corporate IT spending is expected to move to the Cloud by 2025. 
  • $1tn new Cloud Revenues predicted by 2027. Large players still dominate.
  • AI, Cloud, Social Media & Gaming converging – $75bn Microsoft-Activision gaming deal.
  • Positive Cloud growth & 3rd qtr earnings form most leading players – Microsoft most impressive.
  • AI, WFH & Megatrend huge tailwinds boosting Cloud Computing.
  • Just 25% of corporate workloads in the Public Cloud – huge upside potential.
  • Cloud’s ongoing cost savings – boosting usage during Recessionary times.
  • 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)

 

Source of all data: Gins Global / Solactive. Data as of 30.11.2023. 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. 

 

 image

For illustrative purposes only. Source: market.us, 2022. Chart displays expected data.

 

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

MICROSOFT CORP

1.02

5.07

0.05

CLIMB GLOBAL SOLUTIONS INC

0.97

4.93

0.05

MONTNETS CLOUD TECH GROUP

1.18

4.80

0.06

SERVICENOW INC

1.04

4.79

0.05

CROWDSTRIKE HOLDINGS INC

1.28

4.26

0.05

NUTANIX INC

1.37

4.11

0.06

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

INTAPP INC

0.89

2.70

0.02

PALO ALTO NETWORKS INC

1.03

2.64

0.03

EQUINIX INC

0.97

2.38

0.02

COMPUTACENTER PLC

1.13

2.26

0.03

ADOBE INC

1.16

2.10

0.02

INTERNET INITIATIVE JAPAN INC

0.92

0.77

0.01

SPLUNK INC

1.47

0.66

0.01

 

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

 

Cloud Technology ETF Performance
 
As of 30.11.2023

 

1M

3M

6M

YTD

12M

2Y

3Y

SI

HAN-GINS Cloud Technology Equal Weight UCITS ETF  

12.11%

1.51%

8.54%

30.79%

24.91%

-18.46%

-7.05%

36.95%

Solactive Cloud Technology Index (NTR)

12.34%

1.78%

8.99%

31.74%

25.88%

-17.46%

-6.13%

39.83%

 

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 30/11/2023

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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