Global tech ETF identifies some of the most exciting tech opportunities for investors
Future cars, gene sequencing, cloud computing and blockchain are among the most exciting opportunities for investors focusing on the technology sector. That's the view of Anthony Ginsberg, co-creator of a leading global tech ETF, HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK).
Ginsberg says: “Future Cars will benefit significantly from the new Biden stimulus package – with estimated subsidies of USD7,500 per car. Several traditional carmakers have made huge commitments to EV vehicles.
“Gene Sequencing will also receive significant Federal support now as it has become increasingly mainstream in the fight against Covid-19 and other diseases including cancer.”
“In terms of blockchain, it is benefiting hugely from the increased demand for digital wallets as cryptocurrency valuations rise. The successful listing of Coinbase approximating a USD100 billion value, will help mainstream the use of cryptos and become a respected blockchain component.”
Riot Blockchain is up around 89.41 per cent in 2021, and it is ITEK’s top performing holding, followed by Digital Entertainment players Evolution Gaming (up 45.1 per cent) and Bilibili (24.9 per cent). In the past 12 months, ITEK has delivered a return of 57.37 per cent and 104.07 per cent since inception.
When it comes to growth in the Cloud computing sector, Ginsberg says the global technology sector remains set to benefit from strong growth, and a key driver of this is the continued shift to Cloud computing.
He believes cloud spending will continue to accelerate even as the pandemic comes under control. Remote work habits will continue, and it argues that Cloud computing has been the centrepiece of the world’s technical response to the Covid-19 crisis. Public Cloud spending will grow from USD229 billion in 2019 to USD500 billion in 2023, with a compound annual growth rate (CAGR) of 22.3 per cent.
The overall percentage of worldwide IT spend dedicated to the Cloud will continue to accelerate in 2021. Gartner predicts that worldwide public Cloud spending by end-users will grow 18 per cent in 2021 to USD304.9 billion, up from USD257.5 billion in 2020. Cloud native technology is driving enterprise digital transformation strategies.
Ginsberg says: “This year, one of the biggest technology trends will be the continued move to more hybrid/multi-Cloud platforms and infrastructure. This allows multinationals to speedily adopt cloud services across their various global units, allowing the easy flow of data across multiple Clouds. Indeed, IBM’s recent price gain is tied to its goal of becoming the largest hybrid cloud player, on the backs of its USD35 billion Red Hat acquisition.
“Cloud is also benefiting from cybersecurity concerns. Large Cloud platforms including AWS, Microsoft’s AZURE and Google continue to make inroads in this space.”