- Record earnings were reported by the largest
Cloud providers, including constituents of our cloud computing ETF
- Healthcare Cloud spending hits new highs as
hospital adoption rates reach record levels
- Cloud security services is in huge demand due to
remote workers
- EV car makers are adopting cloud
- Majority of Corporate IT budgets are expected to
be devoted to Cloud spending
- Increased corporate M&A activity across
Cloud
Performance Review
The HAN-GINS cloud computing ETF offers broad exposure
to all key areas of the Cloud revolution; infrastructure, security, platform
and software. SKYY includes large cap multinationals
as well as mid-and small caps in its 50 holdings. SKYY’s large-cap and infrastructure exposure
ensures it accurately tracks global cloud activity well beyond just the US and
software developers.
Big Cloud infrastructure providers were SKYY’s largest
contributors to performance in January, including Amazon, Microsoft, Intel,
Zoom, Alibaba and Twilio.
Healthcare has also seen a boom in Cloud adoption rates.
Cloud
Technology ETF (SKYY) Returns
|
January
|
12 Month*
|
|
1.65%
|
29.71%
|
Past performance is no guarantee
of future performance.
Source: Bloomberg, HANetf
*12
Month figures based on 31.01.20 - 31.01.21
Some of our smaller holdings showed the most impressive
gains in January, posting gains exceeding 10%. The table below shows Rackspace,
Kingsoft, Teradata and Inseego as the leaders of the pack.
Cloud adoption rates continue to spike with record revenues
being posted by the leading Cloud infrastructure firms Amazon, Microsoft, Google
and Alibaba.
The recent Salesforce-Slack deal is an example of future
consolidation we expect in the Cloud space.
Remote working has boosted the need for far better cloud security
services. A number of our holdings,
Zscaler and Crowdstrike, are leaders in the cloud security space and continue
to perform well, following record setting 2020 gains. Big trends include moves to more hybrid/multi-cloud
platforms and infrastructure. This will
allow large companies to increasingly adopt cloud services for their various
units globally – allowing the easy flow of data across multiple Clouds.
Source of all data:
Solactive, 31.01.21
|
Holdings
|
% Average Weight
|
Total Return (%)
|
Contribution to Return (%)
|
|
RACKSPACE TECHNOLOGY INC
|
0.13
|
20.36
|
0.04
|
|
KINGSOFT CORP LTD
|
0.68
|
20.00
|
0.12
|
|
TERADATA CORP
|
0.29
|
19.72
|
0.05
|
|
INSEEGO CORP
|
0.21
|
18.68
|
0.03
|
|
EXTREME NETWORKS INC
|
0.24
|
17.42
|
0.04
|
|
AVAYA HOLDINGS CORP
|
0.24
|
16.14
|
0.04
|
|
BANDWIDTH INC-CLASS A
|
0.35
|
15.92
|
0.05
|
|
MONTNETS CLOUD TECHNOLOGY-A
|
0.12
|
15.35
|
0.03
|
|
QUALYS INC
|
0.45
|
13.62
|
0.06
|
|
SIERRA WIRELESS INC
|
0.1
|
12.02
|
0.03
|
|
INTEL CORP
|
4.12
|
11.42
|
0.45
|
|
F5 NETWORKS INC
|
1.29
|
11.37
|
0.15
|
|
ZOOM VIDEO COMMUNICATIONS-A
|
4.03
|
10.30
|
0.37
|
|
CLOUDERA INC
|
0.46
|
9.78
|
0.04
|
Past performance is no guarantee of future performance.
Source: Solactive. Data as of 31.01.2021
HAN-GINS Indxx
Healthcare Innovation UCITS ETF – Performance
As of 31.01.21
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
|
HAN-GINS Cloud Tech UCITS ETF
|
1.65%
|
16.04%
|
15.64%
|
1.65%
|
29.71%
|
56.13%
|
|
Solactive Cloud Technology Index (NTR)
|
1.69%
|
16.19%
|
15.94%
|
1.69%
|
30.40%
|
58.00%
|
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. Source: Bloomberg / HANetf. Data as of 31/01/2021
Industry News
COVID has forced Healthcare and Hospital systems to
increasingly adopt Cloud computing. Such
spending is amongst the fastest growing segments within Cloud - enabling the
onboarding of new health-tech products and services (Telemedicine etc). Other key developments in Cloud include:
- Cloud spending on PaaS is set to
double in just over 2 years[1]
- Asia Pacific = fastest growing for
both Cloud and Online Gaming[2]
- Amazon's new CEO - plus IBM &
Microsoft chiefs - all ran their Cloud units before CEO role
- Amazon’s Cloud unit AWS represented
~60% of all Amazon's total profits in 2020[3]
- Cloud profit margins are amongst
the highest in IT due to their reliable, fast growing subscription model
- SAP Euro Tech giant, making Cloud
top priority for growth. [4]
Constituent News
Our cloud computing ETF currently has 50 constituents, with the US country
weighting at 90.9%. It is followed by Asia (5.1%) and Europe (4.0%). Our US weighting has dropped in recent
months, given the rise of Asian players primarily.
Top 10 holdings include Intel (4.8%), Alphabet (4.2%),
Equinix (4.2%), Microsoft (4.2%), Apple (4.0%), Amazon (4.0%), SAP (4.0%),
Cisco (4.0%), NVIDIA (4.0) and Salesforce (4.0%).
Highlighted below are the leading contributors this past
month – includes Twilio, Intel, Alibaba, Zoom and Microsoft.
Amazon, Microsoft and Google all posted record cloud growth
– with Amazon’s revenues jumping over 50% over the prior year’s quarter. Their
AWS Cloud unit now accounts for almost 60% of Amazon’s total earnings. SAP has made Cloud their leading initiative.
While Google’s cloud unit lost money, its revenues showed considerable
growth. Google is spending big on its
cloud infrastructure buildout, thus bleeding money.
Top Contributors – January 2021
|
Holdings
|
% Average Weight
|
Total Return (%)
|
Contribution to Return (%)
|
|
INTEL CORP
|
4.12
|
11.42
|
0.45
|
|
ZOOM VIDEO COMMUNICATIONS-A
|
4.03
|
10.30
|
0.37
|
|
TWILIO INC - A
|
4.43
|
6.18
|
0.35
|
|
ALIBABA GROUP HOLDING-SP ADR
|
3.69
|
9.07
|
0.33
|
|
MICROSOFT CORP
|
3.82
|
4.29
|
0.18
|
|
ALPHABET INC-CL A
|
4.07
|
4.26
|
0.17
|
|
EQUINIX INC
|
3.73
|
3.61
|
0.17
|
|
F5 NETWORKS INC
|
1.29
|
11.37
|
0.15
|
|
KINGSOFT CORP LTD
|
0.68
|
20.00
|
0.12
|
|
JUNIPER NETWORKS INC
|
0.87
|
8.49
|
0.08
|
|
HEWLETT PACKARD ENTERPRISE
|
1.73
|
4.14
|
0.07
|
|
QUALYS INC
|
0.45
|
13.62
|
0.06
|
|
CROWDSTRIKE HOLDINGS INC - A
|
3.81
|
1.88
|
0.06
|
|
TERADATA CORP
|
0.29
|
19.72
|
0.05
|
Past performance is no guarantee of future performance.
Source: Solactive. Data as of 31.01.21
Outlook
Volkswagen announced it will use Microsoft's cloud
services to streamline its software development efforts for EV and self-driving
cars.[5]
In a post-pandemic world, Cloud will continue to underpin
the digital revolution. According to Forrester predictions, the global public cloud infrastructure market will
grow 35% to 120 billion dollars in 2021.[6]
The integration of cloud computing with AI, big data, and
IoT can be leveraged to attain new heights of innovation. Cloud services can
easily take over on-premises infrastructure and increase business efficiency.
Hybrid Cloud Computing will increasingly take centre stage
with services across public, private and edge environments. This enables ever faster scaling up for
business globally. The shift to hybrid
cloud as the global standard, ensures there will increasingly be a merging of
the lines between the public cloud and the traditional data centre. Hybrid clouds can reduce IT development costs
in the long-term.
The protection of data has become crucial and Cloud is considered
one of the best forms of data backup - secure enough to keep hackers away. Data
recovery becomes easier with cloud computing in place. We expect significant
consolidation across the Cloud Security area as more Cloud companies attempt to
build economies of scale and security services into their 1-stop offerings.
Product Details
HAN-GINS Cloud Technology UCITS ETF, is a UCITS compliant ETF domiciled in Ireland.
The ETF tracks the Solactive Cloud Technology
Index and seeks to provide exposure to companies active in the field of cloud
computing, such as service providers or producers of equipment or software
focused on cloud computing.
Please remember that the value of your investment may go
down as well as up and past performance is no indication of future performance.
Visit the SKYY Fund Page for more information.
