- EV vehicles post strongest growth rates in 8 years.
- Genomic leaders rerated due to successful vaccine launches.
- Digital Entertainment, Genomics, Blockchain and Future Cars the biggest
contributors to monthly performance.
- Our technology ETF is increasingly global – with US exposure under 60% now and Asia approaching
30%.
Performance Review
HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) impressed
with a 7.63% gain in December - benefiting from fast adoption rates across the
Digital Revolution. Our technology ETF's equal
weighting of eight key subthemes ensures it captures many of these gains. ITEK
returned 59.92% for 2020. For December
top contributors represented most subthemes including: Future Cars (Tesla up
24.3%), Cybersecurity (Crowdstrike up 38.2%), Digital Entertainment (Bilibili up
36.4%), Blockchain (Riot up 101.0%), Social Media (Baidu up 55.6%) and Genomics
(Innovent up 60.7%).
ITEK Monthly Performance
December
|
12 Month*
|
7.63%
|
59.92%
|
Past performance is no guarantee of future performance.
Source:
Bloomberg/HANetf
*12 Month figures
based on 01.12.19 - 31.12.20
The leading performers in December continued to benefit from COVID-related
WFH behaviours. Blockchain was the best performing
subtheme (up 67.7%), followed by Cybersecurity (12.9%), Digital Entertainment
(9.4%), Future Cars (6.0%), Genomics (5.3%), Robotics & Automation (3.5%),
Social Media (0.9%) and Cloud Computing (0.3%). Increasing Cybsersecurity is benefiting from
the spike in remote/Cloud usage – with bundled protection offerings. It also benefits from the adoption of hybrid
and multi-cloud platforms.
ITEK’s returns for 2020 have been boosted by holdings across all 8
subthemes. Record online advertising
revenues continues to boost Social Media, Digital Entertainment and Cloud
holdings. The pandemic has boosted our Genomics
constituents due to reratings. ITEK
contains the majority of leaders across the Digital Revolution and shows far
less volatility and lower PE ratios - than the heavily concentrated Nasdaq 100 index.
HAN-GINS
Tech Megatrend Equal Weight ETF– Performance
Total Return NAV to
Date (up to 31/12/20)
|
1M
|
3M
|
6M
|
YTD
|
12M
|
Since Inception
|
HAN-GINS Tech Megatrend Equal Weight UCITS ETF (Acc)
|
7.63%
|
24.14%
|
42.99%
|
59.92%
|
59.92%
|
85.42%
|
Solactive Innovative Technologies Index (NTR)
|
7.69%
|
24.30%
|
43.36%
|
60.58%
|
60.58%
|
87.66%
|
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 31/12/20
Innovative Technology News
The second wave of COVID-19 ensures
that remote technology trends are increasingly mainstream and unlikely to be
replaced. Education Technology, EV
vehicles, Social Media and Digital Entertainment are fast-growing trends in
2021. Gaming had its most profitable
year ever in 2020 with half the industry’s revenue coming from Asia.[1]
Surveillance and cybersecurity
have both become huge issues - ground zero for social media and cloud
computing. We expect more M&A
corporate activity in the IT security area as enterprises and individuals seek
to protect their data and privacy.
E-commerce is building on the
lockdown fuelled growth gaining long-term competitive advantages over more bricks
and mortar stores. As technology and
remote working goes global - we expect all of ITEK’s subthemes to benefit from
the growth – increasingly fuelled by Asia-Pacific’s fast growing adoption
rates.
In the US, the new Biden
Administration will support clean-energy and tech far more than past
presidencies. We expect future cars to
be a key winner, benefiting from likely subsidies, making EV cars more
affordable.
Global EV car sales finished
October 2020 at a near record 342,000 sales (Sept 345,000 was the record) - up
127% on October 2019. This equates to
the highest monthly growth rate in over 8 years with a market share of 4.9% for
October 2020, and 3.5% YTD. Currently, 68%
of all global EV car sales in October were 100% battery electric vehicles
[BEVs]. Chinese EV sales were 147,000 in
October 2020 (up 120% on October 2019). EV market share in China for October
was 7.0%, and 5.4% YTD. Europe EV sales were
up 195% YoY reaching 13% share. Biden's
pro-EV sector policies, plus UK bans on new gas/diesel cars from 2030 means EV
vehicles will significantly grow their market share approaching 30% by decades
end.[2]

For illustrative purposes only. Past performance is no
guarantee of future performance.
Source: https://seekingalpha.com/article/4384125-ev-company-news-for-month-of-october-2020
The Digital Revolution outside the US, particularly in Asia, shows the
fastest adoption rates and growth predicted across Digital Entertainment, Cloud
Tech & Social Media especially.
US Social Network advertising continues to grow at double digit rates,
effectively doubling from 2018-2022 (see chart prediction below. Recent data shows Digital Advertising
representing 50% of all advertising spend in the US – a huge trend as the
figure was almost half this level, just 3 years ago. It’s very likely this trend will be mirrored
worldwide shortly.[3]

For illustrative purposes only. Past performance is no guarantee of future performance.
Constituent News
ITEK’s global mix is representative of the Digital Revolution. Our
US exposure is currently just 57.39%, with Asia 28.85% and Europe at 12.94%. Most of our Top 10 and largest holdings are between
1.2% - 2% - prior to rebalance, due to the equal weighting of all 104
holdings. This is in stark contrast to
the Nasdaq 100 and other technology benchmarks.
Our top performing contributors are listed below for December – by
subtheme and holdings. All subthemes are
well represented, but particularly Cybersecurity, Genomics, Future Cars,
Blockchain and Future Cars. All these
areas have experienced significant reratings.
Star performers last month include Riot Blockchain (101.0%), Baidu
(55.6%), Innovent Biologics (60.7%), Crowdstrike (38.2%), Bilibili (36.4%) and
Celltrion Healthcare (38.6%).
Electric Vehicle leaders Tesla and Nio have forced most large car
makers to announce multibillion R&D commitments, boosting values of existing
EV vehicle players.
For 2020 the biggest contributors to ITEK’s performance gains
included Tesla (up 743.4%), Riot (475.9%), Crowdstrike (363.1%), ZScaler
(329.5%), Pinterest (253.5%), NIO (169.4%), BioNTech (144.3%), NVIDIA (122.3%)
OKTA Cyber (120.4%) and Samsung SDI (cars) 183.1%.
Subtheme Performance – December
Contribution
|
Total Return (%)
|
% Average Weight
|
% Performance of category
|
Genomics
|
0.77
|
14.67
|
5.25
|
Digital Entertainment
|
1.34
|
14.27
|
9.39
|
Robotics & Automation
|
0.49
|
14.12
|
3.47
|
Blockchain
|
2.31
|
3.41
|
67.74
|
Future Cars
|
0.94
|
15.76
|
5.96
|
Cloud Computing
|
0.04
|
11.89
|
0.34
|
Social Media
|
0.11
|
12.27
|
0.90
|
Cyber Security
|
1.65
|
12.75
|
12.94
|
ITEK’s Top Performance Contributors (%) – December
Holdings
|
Index Category
|
% Average Weight
|
Total Return (%)
|
% Contribution to Return
|
RIOT BLOCKCHAIN INC
|
Blockchain
|
2.61
|
101.07
|
2.07
|
BAIDU INC - SPON ADR
|
Social Media
|
1.28
|
55.58
|
0.60
|
INNOVENT BIOLOGICS INC
|
Genomics
|
0.97
|
60.70
|
0.50
|
CELLTRION HEALTHCARE LTD
|
Genomics
|
1.36
|
38.61
|
0.45
|
BILIBILI INC-SPONSORED ADR
|
Digital Entertainment
|
1.30
|
36.37
|
0.41
|
CROWDSTRIKE HOLDINGS
|
Cyber Security
|
1.19
|
38.19
|
0.39
|
ZSCALER INC
|
Cyber Security
|
1.04
|
28.22
|
0.26
|
PROOFPOINT INC
|
Cyber Security
|
0.88
|
31.81
|
0.25
|
RINGCENTRAL INC-CLASS A
|
Cloud Computing
|
1.00
|
27.58
|
0.24
|
NORTHERN DATA AG
|
Blockchain
|
0.80
|
31.24
|
0.24
|
TESLA INC
|
Future Cars
|
1.02
|
24.33
|
0.23
|
SAMSUNG SDI CO LTD
|
Future Cars
|
1.08
|
19.93
|
0.21
|
PALO ALTO NETWORKS INC
|
Cyber Security
|
1.02
|
20.91
|
0.20
|
ROKU INC
|
Digital Entertainment
|
1.50
|
13.10
|
0.19
|
TWITTER INC
|
Social Media
|
1.17
|
16.43
|
0.19
|
SANGFOR TECHNOLOGIES
|
Cyber Security
|
0.83
|
23.95
|
0.19
|
EVOLUTION GAMING GROUP
|
Digital Entertainment
|
0.99
|
18.52
|
0.18
|
Region Breakdown
Region Breakdown
|
Weight
|
North America
|
57.39%
|
Asia
|
28.85%
|
Europe
|
12.94%
|
MENA
|
0.82%
|
Past performance is
no guarantee of future performance.
Source of all data: Solactive / FactSet and Bloomberg / HANetf. Data as of 31/12/20
Fund Details
HAN-GINS
Tech Megatrend Equal Weight UCITS ETF (ITEK) is a UCITS compliant Megatrend 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
|
DE000A2N5XE0
|
EUR
|
Acc
|
SIX
|
ITEK SW
|
ITEK.S
|
IE00BDDRF700
|
CHF
|
Acc
|