Remote technology trends are now mainstream and unlikely to be replaced post the global coronavirus vaccination roll-out, according to the manager of the HAN-GINS Tech Megatrend Equal Weight UCITS ETF (LON:ITEK).
The behaviour of employees appears changed for good, with many employers committing to only return to office-based settings for part of the week, said exchange-traded fund (ETF) manager GinsGlobal.
Cloud computing spending will continue to boom as corporate IT departments reduce their hardware footprint, the manager added, with cybersecurity is “repeatedly feeding off the remote working trend, and more Cloud technology firms are entering the security space seeking to offer one-stop solutions”.
“These areas are more closely bound than ever before and should track each other’s continued growth.”
Cloud growth outside the US will continue to exceed US growth, the ETF managers believe, especially across Asia, with growth in Africa also seen accelerating rapidly.
The manager said social media and digital entertainment are scaling up globally too, pointing to the fact that gaming had its most profitable year ever in 2020 with half the industry’s revenue coming from Asia.
Online gaming now represents the majority of gaming revenue and the ETF's manager expects Amazon, which owns AWS and the Twitch live video streaming platform, and other Big Tech firms to try to grow this area.
Gazing elsewhere in its digital crystal ball, the manager also believes Big Tech is also likely to become more focused on healthcare across telemedicine, gene editing, wearables/trackers and hospital administration.
The HAN-GINS Tech Megatrend Equal Weight UCITS ETF, which GinsGlobal created the ETF on the HANetf platform, has delivered a return of 84.95% over the past year.
Anthony Ginsberg, co-creator of the ETF, said: “Our ETF covers eight key subthemes to ensure we capture much of the growth across technology, and the ones that have delivered some of the most impressive growth recently have been blockchain, future cars, and genomics.
“There are a number of factors that bode well for future growth in tech stocks such as increased spending on cloud technology, and the Biden administration’s green energy approach, which should boost demand for electric vehicle cars.”