Learn more about our equally weighted ETF.
- Cyberattacks such as SolarWinds, Colonial
Pipeline, and Meat factories are driving demand to upgrade cybersecurity.
- Cyber losses grew to $1.8bn in 2020[1]
- Biden’s stimulus/budget - boosting spending on
Future Cars ($174bn), Cybersecurity & Genomics (tackling cancer &
mainstream diseases).[2]
- US govt banning sale of non EV cars from 2035 -
fast-tracking EV adoption rates to catch China.
- Online Advertising growing fastest in Social
Media rather than Search.
- Big Tech is moving into Healthcare aggressively with
huge deals being announced recently (HCA & Nuance).
- COVID - huge gamechanger for Tech &
Healthcare industry. Fast tracking
spending by 5yrs.
- Pandemic has fast-tracked digital adoption
across Telemedicine, Data/Analytics, Wearables, Biotech, Gene Editing &
Robotics.
- WFH behaviour will continue to boost Cloud
spending post-COVID – rising to $500bn within 2 years.[3]
- 25% annual growth in digital health predicted to
2025.[4]
Performance Review
HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) lost
3.4% in May but remains up 65.9% over 12 months. The equally weighted ETF continues to benefit from fast adoption
rates across the Digital Revolution.
Tech
Megatrend ETF (ITEK) Returns
May
|
12 Month*
|
-3.37%
|
65.86%
|
Past performance is no guarantee
of future performance.
Source: Solactive, HANetf
*12
Month figures based on 01.06.20 - 31.05.21
For 2021, Blockchain is up 22.3% despite recent weakness,
followed by Genomics 15.0%, Future Cars 9.3%, Digital Entertainment 7.1%, Robotics/Automation
7.8% and Social Media 4.6% - our winning themes.
Genomics is increasingly seen as a mainstream medical plater
– and leading beneficiary of the COVID pandemic. Recent mRNA breakthroughs have
led to a significant rerating. This
continued in may with these leading players enjoying gains: BionTech up 8.4%, Genmab 10.2%, Beigene 7.5%
and Innovent Biologics 11.4%.
Due to recent rebalance, our equal weighted approach ensures
that all our eight subthemes are all currently between 10.6%-13.7% weightings
within ITEK. ITEK has beaten most competitors over YTD, 6 months and 1yr.
Robotics and Automation is increasingly an exciting subtheme
and top performer. NVIDIA’s advanced
chips are propelling its gains – up 8.2% last month. The onshoring of robotics back to the US is
another key theme propelling robotics and chip makers. Future Cars, Digital
Entertainment and Cybersecurity populated the bulk of our reminding top
performers – on the strength of Biden’s green policy rollout (banning
traditional cars from 2035) – and growing concerns of large scale cyberattacks
in the US. Gaming stocks such as
Nintendo and Activision are propelling online entertainment as a theme – as
global cloud usage continues to spike (particularly in Asia) - and faster internet
speeds means traditional gaming consoles will no longer be required.
Past performance is no guarantee of future performance.
Source of all data: GinsGlobal / Solactive. Data as of 31.05.2021
Contribution
|
Total Return (%)
|
% Average Weight
|
% Performance of category
|
Genomics
|
0.10
|
13.78
|
0.73
|
Digital_Entertainment
|
-0.22
|
12.55
|
-1.75
|
Robotics & Automation
|
0.11
|
14.20
|
0.77
|
Blockchain
|
-3.09
|
10.70
|
-28.88
|
Future Cars
|
0.33
|
11.43
|
2.89
|
Cloud Computing
|
-0.19
|
13.24
|
-1.44
|
Social Media
|
-0.11
|
10.72
|
-1.03
|
Cyber Security
|
-0.15
|
12.53
|
-1.20
|
Past performance is no guarantee of future performance. Source of all data: Solactive. Data as of 31.05.2021
HAN-GINS Tech Megatrend Equal Weight UCITS
ETF Performance (As of 31.05.21)
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
HAN-GINS Tech Megatrend UCITS ETF
|
-3.37%
|
-1.94%
|
17.00%
|
8.70%
|
65.86%
|
101.56%
|
Solactive Innovative Technologies Index (NTR)
|
-3.33%
|
-1.82%
|
17.17%
|
8.80%
|
66.70%
|
104.17%
|
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 31/05/2021
Industry News
More cybersecurity data breaches occurred in 2020, than the prior 15
years - despite a 10% growth in cybersecurity spending last year to $53bn. These are being driven by more severe
ransomware attacks - in some cases disrupting hospitals.[5]
For illustrative
purposes only.
Europe was a key driver of EV car sales in
2020 – capturing 11.5% of total new car sales in the region. In total, 83% of all EVs sold in 2020 were
sold in either Europe (42%) or China (41%).
Until Biden’s election – the US did not have legislation or policies
providing enough sales EV sales push as these two regions. This is starting to change now. EV
sales are predicted to be 48% of all new car sales globally in 2030.[6]
There is pent-up demand for EV cars – as they rely on semiconductors. EVs
rely more on electronics than traditional vehicles. Being far more software driven, any long-term
chipmaker disruptions could pose a problem for EV sales. The Biden push is helping to rerate EV
players upwards.
For illustrative purposes only.
President
Biden is using all the levers of government, from purchasing power, R&D,
tax, trade, and investment policies - to ensure America become the world’s leader
in EV manufacturing, including all input materials and parts.[7]
Genomics holdings such as BionTech and Illumina are well
positioned as Gene Therapies become mainstream in the detection of diseases and
play a key role in Precision (customised) medicine.
Constituent News
ITEK’s global mix of 114 holdings is representative of the
Digital Revolution. Our US exposure is currently 52.6%, with Asia 24.7% and
Europe at 16.8%. Most of our Top 10
holdings are between 1.0% - 1.2%, prior to rebalancing.
-
ITEK is an equally weighted ETF across 8 subthemes
and 114 underlying holdings.
- It is a rules-based index with broad diversification.
-
Holdings of up to 15 per subtheme, are equally
weighted too.
- ITEK’s Top 5 holdings equal just 7%, and Top 10
only 12.3% of its portfolio.
- No overweight or concentrated positions – Top 10
holdings are weighted the same as all others.
-
Provides equal exposure to all key Digital
Revolution themes.
- ITEK is considerably underweight large Megacaps
compared to competitors.
- Unlike Nasdaq and other tech benchmarks which remain
very overweight a few Big Tech players, ITEK’s FAANG exposure remains under 7%
- versus 40% in the Nasdaq 100.
ITEK is a unique Tech ETF by adding Blockchain holdings as a
separate subtheme. Our holdings are not all heavily correlated to
cryptocurrencies, but do include crypto miners, administrators and other
digital ledger players. As the demand for digital ledgers and cryptocurrencies
grow during COVID, we expect two more Blockchain firms to join ITEK’s holdings
at our next rebalance, rounding out this subtheme at 15 holdings.
Our Top performing contributors are listed below for May -
by subtheme and holdings. These were led
by Genomics, Digital Entertainment, Cybersecurity and Robotics/Automation. The
Table below shows the volatility of Tech themes and just how tough it is to
time performance. ITEK's low-cost ETF
covers all key digital themes with consistent performance.
Top Contributors – May 2021
Holdings
|
Index Category
|
% Average Weight
|
Total Return (%)
|
Contribution to Return (%)
|
BIONTECH SE-ADR
|
Genomics
|
1.54
|
8.35
|
0.12
|
BLACKBERRY LTD
|
Cyber Security
|
0.74
|
16.13
|
0.12
|
ARISTOCRAT LEISURE LTD
|
Digital Entertainment
|
1.13
|
11.01
|
0.11
|
INNOVENT BIOLOGICS INC
|
Genomics
|
0.95
|
11.39
|
0.11
|
GENMAB A/S
|
Genomics
|
0.98
|
10.15
|
0.10
|
MANGO EXCELLENT MEDIA CO
|
Digital Entertainment
|
0.95
|
10.16
|
0.10
|
NXP SEMICONDUCTORS NV
|
Future Cars
|
0.94
|
9.82
|
0.09
|
BYD CO LTD-H
|
Future Cars
|
0.69
|
12.37
|
0.09
|
VOLKSWAGEN AG-PREF
|
Future Cars
|
1.08
|
7.01
|
0.08
|
NVIDIA CORP
|
Robotics & Automation
|
0.94
|
8.23
|
0.08
|
BEIGENE LTD
|
Genomics
|
0.91
|
7.54
|
0.08
|
MAXIM INTEGRATED PRODUCTS
|
Future Cars
|
0.89
|
8.52
|
0.08
|
FORTINET INC
|
Cyber Security
|
1.07
|
7.01
|
0.07
|
WATERS CORP
|
Genomics
|
1.00
|
7.46
|
0.07
|
NETEASE INC
|
Digital Entertainment
|
0.90
|
7.26
|
0.07
|
NINTENDO CO LTD
|
Digital Entertainment
|
0.88
|
7.88
|
0.07
|
ANALOG DEVICES INC
|
Future Cars
|
0.87
|
7.92
|
0.07
|
SEAGEN INC
|
Genomics
|
0.84
|
8.06
|
0.07
|
Past performance is no guarantee of future performance.
Source of all data: Solactive. Data as of 31.05.2021
Outlook
Biden’s huge clean energy and infrastructure plans will
boost EV spending dramatically. The US
government banning the sale of traditional gas cars from 2035 - is
fast-tracking EV adoption rates.
New remote WFH behaviours will ensure Cloud Computing
spending continues to dominate – exceeding all non-Cloud spending on IT. AI and 5G are facilitating the expansion of
Edge computing which will boost Cloud spending.
The majority of corporate IT budgets are now devoted to Cloud spending.
The move away from hardware and onsite servers to remote
usage – means Cloud is being hardwired into most corporation’s operations and
software systems.
Demand for cybersecurity is expanding and likely to also be big
beneficiary of the WFH trends along with increasingly large cyberattacks. The SolarWinds, Colonial Pipeline and Meat
factories hack attacks, are driving demand to upgrade cybersecurity.
US government bans on the future sale of non-EV cars from
2035 will help the US fast-track EV adoption rates in line with the EU and
China experience.
There is little doubt that COVID continues to be a huge
gamechanger across various Technologies.
In the healthcare space it has likely fast-tracked spending and adoption
rates by at least 5yrs - across Telemedicine, Data/Analytics, Wearables,
Biotech, Gene Editing & Robotics.
Learn more about ITEK here.