Tech Megatrends ETF Report | April 2025

Equal Weight ETF Key Takeaways

  • ITEK fell -10.34% amidst Trump tariff announcement and global uncertainty on trade rules.
  • Equal weight approach reduced losses, unlike most Mag7 heavily weight IT/Nasdaq indices.
  • ITEK remains positive over a 1Y period despite recent volatility.
  • ITEK’s overall P/E valuation at 18X, remains huge discount to Nasdaq 100 & Mag7 levels – well above 30X.
  • Potential for significant buying opportunity at these levels for leading Tech growth companies.
  • Trump’s tariffs not impacting most ITEK holdings.
  • Global holdings softened US losses, as US weighting dropped -5%.
  • Weakness driven by Blockchain, Social Media, Cloud Computing & AI last month.
  • Tailwinds for ITEK include US inflation falling – latest CPI.
  • Beyond tariffs, more business-friendly Trump Presidency expected to lower taxes & boost Tech M&A space.
  • ITEK global mandate positive as tech convergence globalizes – unlike most US centric Tech indices/funds.
  • Demand & fast adoption of AI – boosting Cloud Computing, AI & Cybersecurity spend.
  • Equal weight across 8 subthemes (12.5% per theme; 120 total holdings, 15 per subtheme).
  • Tech Convergence and AI – boosts broader Tech gains across ITEK holdings, beyond Magnificent 7.
  • ITEK potentially well positioned for broader Tech rally beyond mega-caps.
  • Top 15 leaders for each Megatrend subtheme – all established firms.
  • Top 10 holdings represent only 15% weight; Nasdaq very narrow concentration approaching 50% for Top 10.
  • Mega-cap weight below 8% (Nasdaq 48%).
  • Global mix: US 54.9%, China 14.7%, Japan 8.8%, Australia 3.1%, South Korea 2.7%.

Source of all data: Gins Global / Bloomberg as of 31/03/2025. Additional sources available upon request. Please note that all performance figures are showing net data. Past performance is not indicative of future performance and when you invest in ETFs, your capital is at risk.

Macro Outlook

  • Trump 90-day pause on Tariffs, leading to stock rebound.
  • Possible U-turn on China would boost sentiment.
  • ITEK holdings at cheapest valuations since COVID, average PE at just 18X.
  • Many ITEK holdings remain very undervalued versus Magnificent 7.
  • Trump’s embrace of Silicon Valley executives potentially bodes well for Tech.
  • Tariff polices/threats – boosting demand for Robotics & automation – as onshoring grows.
  • US Tariffs have immaterial impact on Tech software & service firms.
  • Trump deregulation & business friendly policies potentially pose significant ITEK upside.
  • Removal of FTC’s M&A blockages and friendlier crypto and SEC regimes.
  • Tech tailwinds for large-caps, acquisition targets, trade at huge valuation discounts to Mag7/FAANGS.
  • DOGE – more US Government outsourcing of IT services including Cloud, AI, Cybersecurity likely.
  • Tailwinds from Fed rate cuts expected in 2025 – boosting Tech values broadly, beyond just Mag7.
  • Broadening out of Tech gains beyond Mag7 – influx of capital into US Tech continues.
  • Earnings beats for ITEK remain positive – ratio of at least 2:1 for 4th qtr.
  • EPS 14% growth expected for 2025.
  • Less red-tape & possible lower taxes also helpful!
  • AI Convergence across Tech space – positive for Cloud, Social Media, Gaming, Future Cars & Cybersecurity.
  • Big AI spending continuing, boosting AI players & Cloud providers.
  • Over $2.6tn spending in AI expected within decade; potentially boosting Cloud spending to $3.5bn+ too.

Subtheme Returns – March

ContributionContribution (%)Average Return (%)Sum of Weight (%)
Blockchain-3.43%-25.37%12.02%
Robotics & Automation-1.31%-10.47%12.68%
Genomics-0.22%-1.90%14.11%
Cyber Security-0.92%-6.90%14.96%
Future Cars-0.77%-6.44%12.70%
Digital Entertainment-0.87%-7.13%14.43%
Cloud Computing-1.16%-8.00%14.71%
Social Media-1.67%-8.72%15.50%
Total-10.34%

Source of all data: Solactive. Past performance is no guarantee of future performance.

Largest Contributors – March

HOLDINGSIndex CategoryContribution (%)ReturnAverage Weight (%)
(%)
HANSOH PHARMACEUTICAL GROUP COGenomics0.28%35.96%0.88%
OKTA INCCyber Security0.15%16.28%1.12%
PB FINTECH LTDSocial Media0.07%9.52%0.64%
BAIDU INC – SPON ADRCloud Computing0.07%9.36%0.90%
BAIDU INC-CLASS ASocial Media0.06%7.72%0.93%
BYD CO LTDFuture Cars0.07%5.71%1.18%
LEGEND BIOTECH CORPGenomics0.03%5.54%0.51%
RIVIAN AUTOMOTIVE INCFuture Cars0.05%5.15%0.72%
LG CHEM LTDFuture Cars0.00%4.48%0.68%
CHECK POINT SOFTWARE TECH L ORDCyber Security0.03%3.48%0.94%
COSTAR GROUP INCSocial Media0.02%2.90%0.82%
OSL GROUP LTDBlockchain0.02%2.47%0.92%
BRISTOL-MYERS SQUIBB COGenomics0.02%2.30%0.96%
NETEASE INCDigital Entertainment0.02%2.07%0.99%
ZSCALER INCCyber Security0.01%1.12%0.85%
NEXON CO. LTDDigital Entertainment0.00%0.82%0.67%
CORTEVA INCGenomics0.00%-0.08%0.87%
EXELIXIS INCGenomics0.00%-0.11%0.86%
ALIBABA GROUP HOLDING-SP ADRCloud Computing0.01%-0.21%1.23%

Source of all data: Solactive. Past performance is no guarantee of future performance.

Equal Weight ETF Performance
As of 31.08.2026

ITEK (Fund)SOLITEK (Index)
1M5.23%5.28%
3M-11.01%-10.94%
6M14.22%14.59%
YTD12.25%12.76%
12M13.93%14.76%
3Y72.48%75.38%
Since Inception (05/10/2018)149.13%157.62%


Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31.08.2026

Performance before inception is based on back-tested data. Backtesting is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such a strategy would have been. Back-tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs your capital is at risk.

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