Tech Megatrends ETF Report | August 2026

Equal Weight ETF Key Takeaways

  • ITEK struggled in July with an -7.7% decline.[1]
  • Year-to-date gains were +6.7% (as of 31.07.2026).[2]
  • There remains a certain amount of nervousness regarding record levels of capital expenditure on AI, causing a rotation away from AI related stocks.
  • Weaker US jobs and lower inflation are likely to prevent an increase in rates by the Fed.[3] [4]
  • A hold on rates or even a decrease is positive news both the technology sector and broader US marker outlook.
  • Q2 earnings have been largely positive, with the majority of tech companies beating estimates.[5]
  • Global Diversification within the fund helps to limit downside – US 65.4%, China 8.2%, Australia 2.2%, Israel 2.1%.[6]
  • Fund’s P/E has maintained an average in the low 20s – which is an attractive valuation level.[7]
  • Top 10 holdings represent only 13% weight versus Nasdaq’s narrowness which exceeds 50% for the top 10.[8]
  • The best July themes were Cloud +9.2%, Genomics & Social Media both +5.3%, Digital Entertainment +5.15%.[9]
  • ITEK is positioned for a potential broad Tech rally, beyond Mega-Caps, partly because sizeable M&A activity is increasing.
  • Fast adoption of AI is boosting Cloud Computing, AI & Cybersecurity spend, as data centre build out becomes one of the largest infrastructure buildouts in modern history.[10]
  • There are potential tailwinds for ITEK – lower US inflation, no Fed rate increases, and weak US$.
  • Equal weight across 10 subthemes (15 leading holdings per theme).
  • The fund’s diversified equal weight helps ensure ITEK benefits from Global Tech convergence gains.

Past performance is not indicative of future performance and when you invest in ETFs your capital is at risk.

Macro Outlook

  • Recent Mag7 tech selloff shows the Tech rotation away from AI and Megacaps.
  • Almost $3tn spending in AI within decade which could help boost Cloud spending to $3.5tn+. [11]
  • Global equity valuations remain well below levels of the 2000 Internet Bubble. Companies are far better capitalised.
  • US Economy remains resilient with sizeable numbers of jobs added in May and June with +2% GDP growth expected in 2026. [12] [13]
  • AI Convergence across Tech is positive for Cloud, Social Media, Gaming, Future Cars & Cybersecurity.
  • Impressive 2026 tech earnings – may remain at relatively low P/E ratio multiples.
  • Trump Presidency is lowering taxes, introducing large fiscal stimulus which Capex benefits from, and is helping to boost Tech M&A.
  • Following the precedent set by Space X, more Tech related IPOs are expected.
  • Anthropic and OpenAI – the Tech revolution appears to be converging around 3 large IPOs.
  • Tech M&A activity is continuing – more AI acquisitions, and buildout.
  • Anthropic is enterprise focused, at breakeven now. Expected to be the next $1 trillion AI IPO, and backed by Nvidia and Amazon.
  • OpenAI’s IPO is possibly delayed as it remains unprofitable. It is consumer focused and backed by Microsoft.

Subtheme Returns – July

Contribution
Contribution (%)
Average Return (%)
Sum of Weight (%)*
AI & Robotics-3.09%-14.99%14.84%
Blockchain-1.74%-11.19%12.33%
Cloud Computing0.54%9.20%8.99%
Cyber Security-0.43%-4.83%12.65%
Defence-1.71%-16.12%10.37%
Digital Entertainment0.45%5.15%8.34%
Future Cars -1.85%-14.03%11.34%
Genomics 0.46%5.32%8.48%
Quantum-0.80%-19.44%3.42%
Social Media0.51%5.32%9.25%
Sum-7.66%

*After rebalancing
Source of all data: Solactive. Data as of 31.07.2026. Past performance is not an indicator for future results.

Key Risks

  • Information technology companies are generally subject to the following risks: rapid technological changes; short product lifecycles; increase competition; more aggressive pricing and reduced profit margins; loss of patents, copyrights and trademark protections; cyclical market patterns; evolving industry standards; and frequent new product innovations.
  • Thematic ETFs are exposed to a limited number of sectors and thus the investment will be concentrated and may experience high volatility.
  • Investors’ capital is fully at risk and may not get back the amount originally invested.
  • Exchange rates can have a positive or negative effect on returns.
  • Past performance is not indicative of future performance.
  • This is not an exhaustive list, further risks can be found in the Prospectus.

Largest Contributors – July

HOLDINGS
Index Category
Contribution (%)
Return
(%)
ACCENTURE PLC-CL ACloud Computing0.12%33.33%
CAPCOM CO LTDDigital Entertainment0.17%31.61%
BYD CO LTDFuture Cars0.14%29.95%
BITMINE IMMERSION TECHNOLOGIESBlockchain0.13%29.83%
TRUMP MEDIA & TECHNOLOGY GROUP CORPSocial Media0.12%27.39%
ALIBABA GROUP HOLDING LTDCloud Computing0.10%26.01%
MICROSOFT CORPCloud Computing0.14%24.58%
INTUIT INCCloud Computing0.08%21.10%
GRINDR INCSocial Media0.16%20.67%
SAP SECloud Computing0.09%17.67%
SALESFORCE INCCloud Computing0.09%17.46%
KONAMI GROUP CORPDigital Entertainment0.10%16.84%
ILLUMINA INCGenomics0.13%16.65%
NEXON CO. LTDDigital Entertainment0.07%16.57%
PINDUODUO INCCloud Computing0.07%16.10%
BOOZ ALLEN HAMILTON HOLDING CORPCyber Security0.07%14.92%
SAILPOINT INCCyber Security0.09%14.55%
PINTEREST INCSocial Media0.11%14.17%
AMAZON.COM INCCloud Computing0.10%13.95%
BEONE MEDICINES LTDGenomics0.08%13.85%
BRISTOL-MYERS SQUIBB COGenomics0.08%13.35%
TENCENT MUSIC ENTERTAINMENT GROUPDigital Entertainment0.05%13.17%
NINTENDO CO LTDDigital Entertainment0.07%12.68%
WEIBO CORPSocial Media0.06%12.26%
SERVICENOW INCCloud Computing0.07%12.04%
ACCENTURE PLC-CL ACloud Computing0.12%33.33%
CAPCOM CO LTDDigital Entertainment0.17%31.61%
BYD CO LTDFuture Cars0.14%29.95%
BITMINE IMMERSION TECHNOLOGIESBlockchain0.13%29.83%
TRUMP MEDIA & TECHNOLOGY GROUP CORPSocial Media0.12%27.39%
ALIBABA GROUP HOLDING LTDCloud Computing0.10%26.01%
MICROSOFT CORPCloud Computing0.14%24.58%
INTUIT INCCloud Computing0.08%21.10%
GRINDR INCSocial Media0.16%20.67%
SAP SECloud Computing0.09%17.67%
SALESFORCE INCCloud Computing0.09%17.46%

Source of all data: Solactive. Data as of 31.07.2026. Past performance is no guarantee of future performance. 

Equal Weight ETF Performance
As of 31.07.2026

ITEK (Fund)SOLITEK (Index)
1M-7.67%-7.66%
3M0.25%0.37%
6M3.46%3.71%
YTD6.67%7.10%
12M13.00%13.82%
3Y46.59%49.02%
Since Inception (05/10/2018)136.74%144.69%

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31.07.2026
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 and ETCs, your capital is at risk.

* The SFDR classifications for the funds are documented in their respective supplements and approved by the Central Bank of Ireland. The supplement for each fund can be found on their respective product page.

[1] Source: Bloomberg. Data as of 31.07.2026

[2] Ibid

[3] https://www.bbc.co.uk/news/articles/c20j5rle717o

[4] https://www.ft.com/content/52727749-4360-4463-8822-dc3bfd8ef279?syn-25a6b1a6=1

[5] Source: company earnings

[6] Source: Bloomberg. Data as of 30.06.2026

[7] Ibid

[8] Ibid

[9] Source: Solactive. Data as of 30.06.2026

[10] https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/the-7-trillion-dollar-data-center-build-out-how-industrials-can-capture-their-share

[11] https://www.deccanherald.com/technology/artificial-intelligence/global-ai-spending-to-nearly-double-to-35-trillion-by-2027-gartner-4008641

[12] https://www.bls.gov/news.release/pdf/empsit.pdf

[13] https://www.goldmansachs.com/insights/articles/us-gdp-growth-is-projected-to-outperform-economist-forecasts-in-2026

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