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Tech Megatrend Monthly Report | December

 

  • BioNTech’s successful vaccine launch has boosted the value of the stock significantly.
  • Digital Entertainment, Robotics and Automation, and Future Cars were the biggest contributors to monthly performance.
  • Our technology ETF is increasingly global – with US exposure at 56.79%, Asia at 28.70% weighting, and Europe 13.73%.

 

Performance Review

HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) continues to benefit from fast adoption rates across the Digital Revolution.  Our technology ETF has an equal weighting of all eight subthemes that ensures it has captured many of these gains.  November saw a strong rebound of 15.47% gains, with the fund up 48.58% for 2020.  Future Cars is currently the largest weighting (16.15%) due to strong reratings for Tesla and Nio.  Genomics is our 2nd largest subtheme weighting at 14.69%, followed by Robotics & Automation (14.62%), Blockchain’s weighting is set to rise but is currently small at just 2.8%.

The leading performers in November continued to benefit from WFH behaviours.  Impressive gains were posted by our Blockchain holdings (up 87.6%), Future Cars (23.2%), Digital Entertainment (17.4%), and Robotics & Automation (15.5%). Top performing individual holdings include Riot Blockchain (Blockchain, 158.4%), Nio (Future Cars, 65.2%), Trade Desk (Digital Entertainment, 59.1%), and BioNTech (Genomics, 45.6%).

ITEK’s returns have been boosted by holdings across all 8 subthemes.  We expect more Blockchain holdings to enter at our next rebalance in early 2021. Record online advertising revenues continues to boost Social Media, Digital Entertainment and Cloud holdings.  The pandemic has boosted our Genomics constituents as they’ve been rerated with the search for a vaccine and growth of telemedicine.  ITEK’s equally weighted approach ensures performance is far more diversified and globally based.

Past performance is no guarantee of future performance. Source: Solactive Fact Set and Bloomberg. Data as of 30/11/20

 

ITEK Monthly Performance


November


12 Month*


15.47%


54.53%

Past performance is no guarantee of future performance.

Source: Bloomberg/HANetf *12 Month figures based on 01.12.19 - 30.11.20

 

HAN-GINS Tech Megatrend Equal Weight ETF– Performance

Total Return NAV to Date (up to 30/11/20)

 

1M

3M

6M

YTD

12M

Since Inception

HAN-GINS Tech Megatrend Equal Weight UCITS ETF (Acc)

15.47%

14.16%

41.76%

48.58%

54.53%

72.28%

Solative Innovative Technologies Index (NTR)

15.53%

14.33%

42.27%

49.11%

55.25%

74.25%

 

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. Source: Bloomberg / HANetf. Data as of 30/11/20

 

Innovative Technology News

With COVID-19 cases increasing across the US and Europe, remote technologies continue to be well positioned for growing rates of adoption, as permanent behavioural changes occur.

The PwC chart below on Digital Advertising, shows the revolution/megatrend we’re living through and how it will dominate over the next few years. The biggest beneficiaries of this advertising revolution are Social Media and Digital Entertainment companies, such as our Tech Megatrend ETF holdings Activision, Facebook, Snap, Pinterest, but also Amazon.   

The Digital Revolution outside the US, particularly in Asia, shows the fastest adoption rates & growth predicted there, with Digital Entertainment, Cloud Tech & Social Media growing especially fast. 

Recent data shows Digital Advertising representing 50% of all advertising spend in the US – a massive trend as the figure was almost half this level just 3 years ago. It’s very likely this trend will be mirrored worldwide shortly.[1]

For illustrative purposes only. Published on MarketingCharts.com in September 2020. Data source: PwC Traditional media figures include online equivalents (e.g. $11.8 in OOH advertising includes forecast $4.7bn in digital OOH)  

*Figures include advertising in Canada **Excludes e-sports Source of all data: PwC

 

Constituent News

ITEK’s global mix is representative of the Digital Revolution. Our US exposure is currently just 56.79%, with Asia hitting 28.70% and Europe at 13.73%. 

With the Pfizer-BioNTech successful vaccine trials announced, BioNTech gained an impressive 59.1% for the month and is a top 4 holding.  Reratings of Future Cars, Digital Entertainment and Blockchain led to significant gains amongst these holdings too.  GM and Volkswagen both announced multibillion R&D commitments, boosting values of existing EV vehicle players.

For the year to date, top performing holdings include Tesla (578.4%), Pinterest (275.6% - Social Media), BioNTech (272.3% - Genomics), ZScaler (235.0 - Cybersecurity), Nio (179.3% - Future Cars), Samsung (136.0% - Future Cars), NVIDIA (128.1% - Robotics), CrowdStrike (235.1% - Cybersecurity), Genmab (72.9% - Genomics) and Roku (82.1% - Digital Entertainment)

Subtheme Performance – November

Contribution

Total Return (%)

% Average Weight

% Approx. Performance of category

Genomics

1.82

14.60

12.47

Digital_Entertainment

2.37

13.66

17.35

Robotics & Automation

2.27

14.61

15.54

Blockchain

1.7

1.94

87.63

Future Cars

3.69

15.90

23.21

Cloud Computing

0.86

12.75

6.75

Social Media

1.27

13.00

9.77

Cyber Security

1.57

12.54

12.52

 

ITEK’s Top Performance Contributors (%) – November

Holdings

Index Category

% Average Weight

Total Return (%)

Contribution to Return (%)

Riot blockchain inc

Blockchain

2.06

158.41

1.42

Nio inc - adr

Future Cars

2.22

65.24

1.05

Trade desk inc/the -class a

Digital_Entertainment

1.57

59.07

0.67

Biontech se-adr

Genomics

1.70

45.55

0.58

Roku inc

Digital_Entertainment

1.41

45.04

0.50

Celltrion healthcare ltd

Genomics

1.09

47.83

0.40

Bilibili inc-sponsored adr

Digital_Entertainment

1.11

40.72

0.38

Tesla inc

Future Cars

0.95

46.27

0.34

Pinterest inc- class a

Social Media

1.84

18.78

0.33

Bluecity holdings ltd-adr

Social Media

0.97

38.45

0.29

Stmicroelectronics nv

Future Cars

1.09

28.91

0.28

Palo alto networks inc

Cyber Security

0.95

32.88

0.28

Northern data ag

Blockchain

0.78

45.01

0.28

Infineon technologies ag

Future Cars

1.07

26.87

0.26

Microchip technology inc

Robotics & Automation

1.02

28.26

0.26

 

ITEK’s Top 10 Holdings – November

Company

Sector

Weight

NIO Inc

Future Cars

2.22

Riot Blockchain Inc

Blockchain

2.06

Pinterest Inc

Social Media

1.84

BioNTech SE

Genomics

1.70

Trade Desk Inc/The

Digital Entertainment

1.57

Roku Inc

Digital Entertainment

1.41

Exact Sciences Corp

Genomics

1.34

Zoom Video Communications Inc

Cloud Computing

1.23

Xilinx Inc

Robotics & Automation

1.17

FANUC Corp

Robotics & Automation

1.16

 

Region Breakdown

Weight

North America

56.79%

Asia

28.70%

Europe

13.73%

MENA

0.78%

 

Past performance is no guarantee of future performance

Source of all data: Solactive / FactSet and Bloomberg / HANetf. Data as of 30/11/20 

 

Product Details

HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) is a UCITS compliant technology ETF domiciled in Ireland. Our technology ETF tracks the Solactive Innovative Technologies Index (Net Total Return), an index of leading companies that are driving innovation in sectors including Robotics & Automation, Cloud Computing & Big Data, Cyber Security, Future Cars, Genomics, Social Media, Blockchain and Augmented & Virtual Reality.

The Solactive Index is managed according to a published, rules-based methodology. It is designed to measure the performance of an investable universe of publicly-traded companies that are involved in innovative and disruptive technological trends across a broad range of industries mentioned. To be included, companies must derive a majority of revenue from one of these themes.

Please remember that the value of your investment may go down as well as up and past performance is no indication of future performance.


EXCHANGE


BB CODE


RIC


ISIN


CURRENCY

INCOME

London Stock Exchange

ITEK LN

ITEK.L

IE00BDDRF700

USD

Acc

London Stock Exchange

ITEP LN

ITEP.L

IE00BDDRF700

GBP

Acc

Borsa Italiana

ITEK IM

ITEK.MI

IE00BDDRF700

EUR

Acc

XETRA

T3KE GY

T3KE.DE

IE00BDDRF700

EUR

Acc

SIX

ITEK SW

ITEK.S

IE00BDDRF700

CHF

Acc

 

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