Tech megatrend ETF outlines fastest growing tech sectors and trends for 2021
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 ITEK 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 per cent in 2020 compared to the Nasdaq 100 index which returned 48.88 per cent, and has recently surpassed USD65 million in assets under management. Past performance is no guarantee of future performance. When you trade ETFs your capital is at risk.
ITEK’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 eight 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 per cent exposed to the FAANGS where ITEK is less than 4 per cent. The largest holding in ITEK is Riot Blockchain at 4.10 per cent. This means the ITEK investor gets eight 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.