The sky’s the limit for HAN-GINs tech megatrend ETFs
HANetf reveals strong returns for the HAN-GINS Tech Megatrend Equal Weight ETF (ITEK) and the HAN-GINS Cloud Technology UCITS ETF (SKYY).
HANetf reports that the two tech megatrend ETFs have gained strong long-term returns for investors as tech rebounds of 119.1 per cent for ITEK and 81.1 per cent for SKYY since inception. For 2021, ITEK is now up 25.1 per cent and SKYY up 15.5 per cent.
ITEK provides exposure to the disruptive technology companies across robotics and automation, cloud computing and big data, cyber security, future cars, genomics, social media, blockchain and digital entertainment while SKYY focuses on cloud computing technology including infrastructure as a service, software as a service and platform as a service.
Both megatrends have seen growth in short-term with strong subscription numbers and earnings from Netflix, an ITEK holding, as well as recent deals by major US banks Morgan Stanley, Capital One and Wells Fargo to fully embrace big Cloud usage.
The US Government USD3 trillion budget gives a significant boost to electric vehicle infrastructure across the US. Biden also allocated USD58.4 billion towards IT infrastructure along with USD10 billion to cybersecurity and USD12 billion to genetic sequencing, all being the key holdings in ITEK fund.
Big Tech investments in healthcare such as Google’s deal to digitise records at US hospital group HCA and Microsoft’s USD20 billion acquisition of healthcare analytics group Nuance Communications has provided further boost to holdings in SKYY ETF.
Longer term trends such as forecasts that global cloud spending is set to double to USD1.3 trillion by 2025 and the expansion of new wireless communications 5G, R16 and R17 worldwide and in Asia has added certainty in the sector.
Cloud security firms continue to be rerated upwards, benefiting from the increased spending following the growing number of cybersecurity/hack attacks. Those involved in the detection and prevention of major cyber-attacks are increasingly acquisition targets. This has led to strong recent performance, the firm writes.
Anthony Ginsberg, Managing Director of GINSGlobal Index Funds says: “The timing has been excellent for investors to access the SKYY and ITEK ETFs, which provide access to disruptive tech megatrends at low cost.
“The impact of COVID-19 has accelerated the digital revolution across a wider range of sectors including healthcare, entertainment and cloud usage by major corporates while President Biden’s stimulus package has provided a significant boost to electric vehicle infrastructure and IT infrastructure.
“We expect additional re-ratings upwards for our holdings across these themes and our ETFs are among the biggest beneficiaries of this fast adoption.”
ITEK tracks the Solactive Innovative Technologies Index (Net Total Return) which focuses on companies poised to benefit from the fourth industrial revolution - including those involved in Robotics & Automation, Cloud Computing and Big Data, Cyber Security, Future Cars, Genomics, Social Media, Blockchain and Digital Entertainment.
SKYY tracks the Global NextGen Healthcare Index (Net Total Return), an index designed to measure the performance of large, mid, and small capitalisation companies, primarily listed on an exchange in Developed and Emerging markets that are involved in the Advanced Life Sciences and Smart Healthcare sector.