Future cars, gene sequencing, cloud computing and blockchain are among the most exciting opportunities for investors focusing on the technology sector, says Anthony Ginsberg, co-creator of the HAN-GINS Tech Megatrend Equal Weight UCITS ETF (LON:ITEK) and HAN-GINS Cloud Technology Equal Weight UCITS ETF (LON:SKYY).
In the past 12 months, ITEK has delivered a return of 57.37% and is up 104.07% since inception in October 2018.
Blockchain has been the main drive this year for the ETF, with Riot Blockchain Inc is up around 89.41% in 2021 and ITEK’s top performing holding.
Next best are a pair of digital entertainment groups, Sweden’s Evolution Gaming, up 45.1%, and China’s Bilibili Inc, up 24.9%.
In the 12 months to 31 May 2021, SKYY has delivered a return of 34.19% and 66.03% since inception in November 2018.
“Future cars will benefit significantly from the new Biden stimulus package – with estimated subsidies of $7,500 per car. Several traditional carmakers have made huge commitments to EV vehicles,” Ginsberg said in a statement from the ETF’s platform operator HANetf.
“Gene sequencing will also receive significant Federal support now as it has become increasingly mainstream in the fight against COVID 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 $100bn value, will help mainstream the use of cryptos and become a respected blockchain component.”
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 is not the only one to predict that cloud spending will continue to accelerate even as the pandemic comes under control as remote work habits will continue.
Public cloud spending will grow from US$229bn in 2019 to US$500bn in 2023, with a compound annual growth rate (CAGR) of 22.3%, according to XXXX.
The overall percentage of worldwide IT spend dedicated to the cloud will continue to accelerate in 2021, with Gartner predicting that worldwide public cloud spending by end-users will grow 18% in 2021 to $304.9 bn, up from $257.5bn in 2020.
“This year, one of the biggest technology trends will be the continued move to more hybrid/multi-cloud platforms and infrastructure," says Ginsberg.
"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 $35bn 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.”