A new ETF designed to capitalise on the surge in demand for internet infrastructure has launched in London.
The Digital Infrastructure and Connectivity UCITS ETF (LON:DIGI) will focus on companies at the forefront of the digital infrastructure revolution, 5G and the Cloud said its sponsors - specialist investor Quikro, index group Tematica Research and ETF platform HANetf
US tech giant Cisco Systems has predicted global internet traffic will grow by 370% by 2022 as the number of users, the number of devices per user, and the amount of data per device all increase said the trio.
DIGI will focus on six key sub-themes: Data centres; Digital connectivity; Data networks; Digital transmission; Digital processing and digital services and intellectual property
The ETF will follow a new index called Tematica BITA Digital Infrastructure and Connectivity Index (TBDIGI), which comprises over 80 global equities that are driving the digital infrastructure revolution. TBDIGI returned 40.8% over the 12 months to 30 September.
Christopher Versace, chief investment officer of Tematica Research, said: “With almost five billion people connected to the internet today, the demand for continuous access to digital information and communication is growing exponentially.
"By 2022, new and existing applications are expected to drive mobile data traffic alone to 930 exabytes per year, an 11,300% increase over 2012, which equates to all the movies ever made crossing global mobile networks every 5 minutes.
"5G and other disruptive broadband-enabling technologies will foster new rich data applications such as semi-autonomous and autonomous vehicles that will ultimately drive network congestion and require further infrastructure investment buildout.
"This in turn will fuel the development of new applications and data, otherwise known as the virtuous digital circle.
“The Tematica BITA Digital Infrastructure and Connectivity Index was designed to capture this long-term trend.”
Nik Bienkowski, Co-CEO of HANetf added: “The Digital Infrastructure and Connectivity UCITS ETF focuses on some of the most exciting and transformational themes in the world today and allows investors to invest in this long term megatrend of exponential growth in traffic using digital infrastructure.”
DIGI will be the 11th ETF on the HANetf platform since its launch in October 2018 and its sixth thematic vehicle.