- Strong appetite for innovative technology companies globally
- Investors are looking at companies outside of the core FAANGs story
- Emerging markets tech companies are playing an increasingly important economic role
- New sub-sectors like Cloud are re-shaping the business landscape
LONDON 4 February 2020: Last year saw strong demand for tech stocks drive three of HANetf’s first funds to 30%+ annual gains as the global tech revolution started to take hold.
The initial trio of Exchange Traded Funds launched by the innovative HANetf white label ETF platform in London benefited from their ability to tap strong thematic growth stories within the global technology and emerging markets areas.
The funds and their performance in 2019 were:
|Fund||Primary Ticker||2019 Performance (01.01.2019-31.12.2019) in USD||Index tracked||Total Expense Ratio|
|EMQQ Emerging Markets & E-Commerce||EMQQ||+32.09%||EMQQ Emerging Markets Internet and E-Commerce Index||0.86%|
|HAN-GINS Cloud Technology UCITS ETF
|SKYY||+38.59%||Solactive Cloud Technology Index||0.75%|
|HAN-GINS Innovative Technology UCITS ETF
|ITEK||+31.72%||Solactive Innovative Technologies Index||0.75%|
Source: BNY Mellon. For illustrative purposes only. Past performance is no guarantee of future performance. Your capital is at risk.
All three funds were listed on the London Stock Exchange, XETRA in Frankfurt and Borsa Italiana in Milan in 2018. All are structured as UCITS funds and domiciled in Ireland. The ETFs have also been registered for distribution in the Netherlands and Finland.
2019 saw dozens of companies outside the main flagship technology giants contributing to the growth in value of the technology sector, as investors focused on major new themes like e-commerce, the rise of the Cloud, 5G, the Internet of Things and machine learning.
Within emerging markets larger technology businesses have been launched to serve an increasingly wealthy and sophisticated middle class, with countries like China, Russia and Brazil hosting burgeoning technology markets of their own.
Anthony Ginsberg, Managing Director of GINS Global and co-creator of the HANetf Cloud Technology and Innovative Technology ETFs commented:
“We’ve seen some excellent results from these ETFs thanks to the growing influence of the technology sector in the day to day lives of people all over the world. The indexes they track are designed to help investors get exposure to this exciting theme by following the performance of companies outside the high-profile names. For example, while our cloud product tracks big stocks like Salesforce and Cisco Systems, it also follows other companies like Equinix and Xunlei which are much less talked about, but just as essential to the growth of the cloud economy.”
Kevin Carter, Founder & Chief Investment Officer of EMQQ, The Emerging Markets Internet & Ecommerce ETF commented:
“The investment premise behind EMQQ was and still is, to capture how the smartphone is transforming consumption across the planet, yet with an even more pronounced impact in the developing world. With billions of people in emerging markets set to join the consuming class in the coming years, these ‘digital natives’ are being armed with shopping malls in their pockets and leapfrogging what we think of as traditional consumption. This rapid digitization of the developing world is now giving rise to a new universe of internet and ecommerce innovators in some of the fastest-growing markets in the world.”
Hector McNeil, Co-Founder of HANetf, commented:
“We’ve been very pleased with the spectacular results from our first three ETFs over the course of 2019. At HANetf we work with fund managers who can bring investors something special – the ability to provide exposure to exciting new investment themes that are changing the world. The ETF wrapper lets them do this in a format that is cost effective and more transparent than conventional mutual funds, while the UCITS format provides them with the scope to distribute across the European Union as well.”
To find out more about how tech stocks are driving growth join us for HANetf’s upcoming webinars:
- Technology Outlook 2020 -Beyond the FAANGS. Friday 13th February 2020
- The future of Consumption: Emerging Markets and the Digital Revolution. February 20th 2020