Leading megatrend tech ETF says Tesla remains undervalued | ITEK
A
spokesperson for the HAN-GINS Tech Megatrend ETF (ITEK),
says despite the recent meteoric rise in the share price of Tesla, the company
is undervalued.
The Tech megatrend ETF, which recently surpassed $70milllion
in assets under management[1],
says there are many reasons why Tesla is undervalued. The electric vehicles sector has recently
posted the strongest growth in eight years, and with 1.3 million cars on the
road, it says Tesla has reached a crucial inflection point. It believes the company is increasingly set
to disrupt a growing number of industries including energy, software, robotics,
ride sharing and insurance.
Anthony Ginsberg, Co-creator of the
HAN-GINS Tech Megatrend ETF (ITEK), says: “Tesla
is not just a car company – it’s use of remote Cloud and AI technology is increasingly
in-house and not outsourced like all other car manufacturers. Many of us thought the first robots would
look like humans - but they ended up looking like cars. Tesla is manufacturing the world’s first
fully autonomous robots. Its self-driving
cars will likely be safer than humans, reducing insurance costs and could
ultimately displace ride-sharing apps by being far cheaper. Last month they released a fully self-driving
car, and it works. It already sells
insurance at 20%-30% cheaper than traditional insurance.
“We believe Tesla also remains undervalued based on its cutting-edge
manufacturing too – it’s considerably cheaper than traditional automakers. Instead of a traditional car frame of 700+
parts, Tesla now uses just two parts – via its ‘Mega-casting’ technology. Tesla’s self-driving trucks (Tesla Semi) will
likely change the face of trucking/lorries.
“Tesla is disrupting a number of industries at once –
Tesla Solar with its Charging Network, Powerwall & Energy Marketplace could
transform the traditional energy sector.
While Tesla does not have car dealerships nor sell vehicles by model
year – it upgrades its models in real time unlike any other carmaker. It is truly a revolutionary company.”
The
HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) delivered growth
of 29.45% in the last 3 months and 64.82% in the last 12 months[2]
compared to the Nasdaq 100 index which returned 45%[3],in
the past 12 months. Past performance is no guarantee of future
performance. When you trade ETFs your
capital is at risk.
HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) is a
UCITS compliant megatrend ETF domiciled in Ireland, that 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 HAN-GINS Tech Megatrend ETF (ITEK) is expecting strong growth in the global
technology sector this year. It invests across eight tech megatrend sub-themes,
with Genomics, cyber security, social media and future cars having the four
largest weightings (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.