Technology shares have staged an impressive, but uneven recovery following the recent selloff due to COVID-19.
Investing beyond the narrow FAANGS is increasingly prudent – as many of the most exciting Tech opportunities are found below these Mega-Caps. Smaller Tech companies, typically trade at cheaper valuations and benefit from increased M&A activity.
The chart below shows the benefits of a broader Tech investing approach – over the past 5 years. In 2020 Health Tech stocks have performed best, followed by Cloud Tech. In prior years – various Tech themes (Robotics, Future Cars, Cybersecurity) were amongst the top performers.
Our broad Innovative Tech ETF (ITEK) equally weights all 90 holdings – including various Tech themes. ITEK’s approach ensures superior returns with lower volatility. It outperforms the majority of single Tech themes.
- Predicting which innovative sector will be the best performer in a given year is very challenging.
- ITEK takes adiversified approach Ranking of Innovative Technology Sectors.
- Based on Sharpe Ratio. Source,Bloomberg, HANetf data as of 24th April 2020