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Unique tech megatrend ETF outlines fastest growing tech sectors and trends for 2021 and HAN-GINS range surpasses $100m AUM | ITEK

 

  • Education technology, electric vehicles, social media and digital entertainment set to be the fastest growing tech megatrends in 2021.
  • Asia Pacific will see the fastest growth in tech adoption rates.
  • Tech megatrend ETF, HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK), has recently surpassed $65million in assets under management.
  • HAN-GINs ETF range surpass $100m AUM which also includes healthcare innovation and Europe’s first cloud technology ETF.

 

26th January 2021, London

A spokesperson for the HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK), says the second wave of COVID-19 will further embed remote technology trends as ‘mainstream’, making it increasingly unlikely they will be replaced once the world returns to some form of normality.

In particular, the Technology ETF says education technology, electric vehicles, social media and digital entertainment will be the fastest growing tech trends in 2021.  On a geographical basis it believes Asia Pacific will see the fastest growth in tech adoption rates.

It also believes surveillance and cybersecurity will become even bigger issues this year, and expects more M&A corporate activity in the IT security sector, providing some potential exciting opportunities for investors.

Anthony Ginsberg, Co-creator of the HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK), says “E-commerce in particular is building on the lockdown, and gaining long-term competitive advantages over more bricks and mortar stores. 

“As technology and remote working becomes increasingly global - we expect all of the sub-themes in ITEK to benefit from the growth – increasingly fuelled by Asia-Pacific’s fast growing adoption rates.

“We are also optimistic about the US - the largest market for us - as 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.”

The HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) is expecting strong growth in the global technology sector this year.  The tech megatrend ETF delivered growth of 59.92% in 2020[1] compared to the Nasdaq 100 index which returned 48.88%[2], and has recently surpassed $65million in assets under management[3]. Past performance is no guarantee of future performance.  When you trade ETFs your capital is at risk.

 

Our Technology ETF's returns for 2020 were boosted by holdings across all of its eight subthemes.  Record online advertising revenues provided a huge boost to Social Media, Digital Entertainment and Cloud holdings.  The pandemic has also boosted its Genomics constituents due to re-ratings. 

ITEK’s unique double equal weighting strategy also provides important diversification in sectors that are dominated by a handful of global leading companies namely the FAANGS. ITEK equal weights across the 8 mega trends and then equal weights the individual stocks in each trend. Most tech related ETFs track market capitalisation indices which leads to a high concentration in a few large companies, for example the Nasdaq 100 index is 32%[4] exposed to the FAANGS where ITEK is less than 4%[5]. The largest holding in ITEK is Riot Blockchain at 4.10%[6]. This means the ITEK investor gets 8 themes in one ETF, significant diversification and impressive performance. 

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.  Its subtheme returns for 2020 were led by Blockchain, Digital Entertainment, Future Cars and Genomics (see table):

 

Megatrend Sub-theme

Total Return (%)

% Average Weight

2020 Performance of category (%)

Genomics

11.54

16.14

71.50

Cyber Security

8.94

15.30

58.43

Social Media

8.27

14.97

55.24

Future Cars

10.56

14.59

72.38

Cloud Computing

3.76

15.27

24.62

Robotics & Automation

6.28

16.76

37.47

Digital Entertainment

4.42

4.18

105.74

Blockchain

4.36

0.67

650.75

Source: Solactive Fact Set and Bloomberg.  Data as of 31.12.2020.  Past performance is no guarantee of future performance.

 

 

The HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK)

HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) is a UCITS compliant Technology ETF domiciled in Ireland. ITEK 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.

The HAN-GINS range of ETFs which include the HAN-GINs Cloud Technology UCITS ETF and HAN-GINS Indxx Healthcare Innovation UCITS ETF, as well as the HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) have recently surpassed over $100m assets under management[7]. 

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

 

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