Digital Infrastructure and Connectivity ETF identifies boost from global e-learning expansion
The Digital Infrastructure and Connectivity UCITS ETF (DIGI) is highlighting how the rapid global growth in Advanced Learning Technology is being accelerated by the Covid-19 lockdown switch to remote learning.
The digital infrastructure ETF, which launched in October last year tracks the Tematica BITA Digital Infrastructure and Connectivity Index (NTR) which has already delivered returns of 87.97 per cent over the past 12 months, expects a permanent boost to digital infrastructure demand as remote learning becomes firmly established in the mainstream.
The DIGI digital infrastructure ETF, which was developed by Quikro, an investor in the financial services industry which sponsors the launch and development of innovative ETFs, together with HANetf, points to the growing investment in the sector which will depend heavily on growth in digital infrastructure globally in order to be successful.
Global growth in the Advanced Learning Technology market is forecast to be 22.8 per cdent a year with revenues expected to treble to USD129.7 billion by 2025 with North America, Western Europe and Asia Pacific all seeing expansion. The global EdTech and Smart Classroom Market is predicted to grow from USD74.33 billion in 2019 to USD251.78 billion by 2025.
Increasing automation across the global economy will mean more workers having to retrain which will further drive demand for e-learning. E-learning is even good for the environment using 90 per cent less energy and producing 85 per cent less CO2 than face-to-face teaching.
The lockdown switch to e-learning has already seen nearly 1.4 billion students move online to some extent for learning and the switch has exposed the need to improve connectivity in general with Governments increasing investment in addressing the digital divide.
Lenore Hawkins, Director of Research of the Digital Infrastructure and Connectivity UCITS ETF (DIGI), says: “E-learning was already growing rapidly before COVID-19 hit and the past year has accelerated that trend as students and education institutions have become used to remote learning and seen the benefits. This growing trend adds to insatiable demand for digital infrastructure and provides a potential opportunity for investors. We designed the index to capture the impact of the virtuous digital circle and the rise of e-learning is yet another fascinating aspect of it. The Digital Infrastructure and Connectivity UCITS ETF allows investors to invest in the long term megatrend of exponential growth in traffic using digital infrastructure.”
The Digital Infrastructure and Connectivity UCITS ETF is a UCITS compliant ETC domiciled in Ireland. It follows an index comprised of 80-plus publicly listed global equities that support the following six key functions: data centres, data networks, digital connectivity; digital transmission: digital processing; and digital solutions and IP.
Companies in the index include InterDigital (IDCC), Fastly (FSLY), Skyworks (SWKS) and Equinix (EQIX).