Cloud Technology ETF Monthly Report

30 January 2024

Cloud Technology ETF Key Takeaways | January

  • Cloud Tech ETF saw a 41.3% return in 2023; 100 holdings offers broad global cloud ecosystem coverage.  
  • Lower P/E, P/B and P/S valuation metrics vs competitors including Nasdaq (end Dec 2023).
  • Equal weight ensures 1% weight at rebalance, twice annually.  Mega-cap weight under 10%.
  • Top 5 & 10 weights far smaller than competitors (under 8% & 15% respectively).
  • Top 2023 contributors, all returned above 70% – NVIDIA CORP, CROWDSTRIKE HOLDINGS INC, FASTLY INC - CLASS A, ELASTIC NV, PALO ALTO NETWORKS INC, ZSCALER INC, SALESFORCE, DELL TECHNOLOGIES, SENTINELONE, NUTANIX INC, ARISTA NETWORKS INC, INTEL CORP, CLOUDFLARE, INFORMATICA, SERVICENOW, ADOBE.
  • US weight 80%; Non-US mix 20%.
  • Globally diversified – China 6.8%, UK 3.1%, Japan 2.6%, Israel 2.0%.
  • Holdings very representative across SaaS, PaaS and IaaS.
  • Only Article 8 ESG complaint Cloud ETF and using a global benchmark.[1]
  • 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 31.12.2023. 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 industry continues to grow at ~20% annually.
  • AI, WFH, and megatrend huge tailwinds boosting Cloud Computing.
  • Microsoft now largest global company, its Cloud initiatives big reason.
  • AI services ChatGPT and BARD being integrated into Cloud – boosting demand/usage by AWS, Azure, Google and Oracle.
  • Cloud’s ongoing cost savings – boosting usage during inflationary times.
  • Biggest purchasers of Nvidia chips are Cloud providers – AWS (Amazon), Azure (Microsoft), Google and Oracle.  
  • $1tn new Cloud Revenues expected by 2027. Large players still dominate.
  • Upwards of 50% of all Corporate IT spending is expected to move to the Cloud by 2025. 
  • AI, Cloud, Social Media and Gaming converging – $75bn Microsoft-Activision gaming deal.
  • Positive Cloud growth across recent quarterly earnings – Microsoft most impressive of leading players.
  • Just 25% of corporate workloads in the Public Cloud – huge upside potential.
  • Highly regulated players see big Cloud adoption (Banks, Insurers, Healthcare & Public Sector/Governments).
  • Asia highest Cloud usage per capita globally. (Digital Entertainment & Corporate)

 

Source of all data: Gins Global / Solactive. Data as of 31.12.2023. 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 – December

HOLDINGS

Contribution (%)

Return (%)

Average Weight (%)

SENTINELONE INC

0.54%

44%

1.56%

ELASTIC NV

0.49%

40%

1.64%

MICROSTRATEGY INC-CL A

0.38%

27%

1.59%

OKTA INC

0.33%

35%

1.09%

GITLAB INC-CL A

0.28%

30%

1.11%

ATLASSIAN CORPORATION PLC

0.27%

25%

1.21%

MERIDIANLINK INC

0.27%

30%

1.04%

JFROG LTD

0.27%

28%

1.06%

RACKSPACE TECHNOLOGY INC

0.27%

59%

0.58%

BANDWIDTH INC

0.25%

32%

0.88%

CONSENSS CLD ORD

0.25%

42%

0.76%

LM ERICSSON TELEFON AB CLASS B

0.24%

21%

1.01%

NCINO INC

0.20%

22%

0.96%

COUCHBASE INC

0.18%

15%

1.29%

INFORMATICA INC

0.17%

13%

1.40%

DIGITALOCEAN HOLDINGS INC

0.17%

24%

0.79%

TWILIO INC

0.17%

17%

1.07%

RINGCENTRAL INC

0.16%

19%

0.94%

INTEL CORP

0.16%

12%

1.27%

ZSCALER INC

0.16%

12%

1.35%

NUTANIX INC

0.16%

11%

1.53%

8X8 INC

0.16%

22%

0.78%

CLIMB GLOBAL SOLUTIONS INC

0.15%

15%

1.06%

INTERNET INITIATIVE JAPAN INC

0.13%

9%

0.94%

 

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

 

Cloud Technology ETF Performance
 
As of 31.12.2023

 

1M

3M

6M

YTD

12M

2Y

3Y

SI

HAN-GINS Cloud Technology Equal Weight UCITS ETF

8.05%

14.80%

12.50%

41.32%

41.32%

-12.36%

-3.66%

47.97%

Solactive Cloud Technology Index (NTR)

8.11%

15.14%

12.99%

42.43%

42.43%

-11.27%

-2.70%

51.17%

 

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/12/2023

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] https://etp.hanetf.com/l/882763/2023-01-03/kknbb/882763/1672738281SLrGsnOd/HANetf_ICAV_SFDR_Website_Disclosures_HAN_GINS_Cloud_Technology_Equal_W.pdf

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