Tech Megatrends ETF Report | March 2025

Equal Weight ETF Key Takeaways

  • ITEK fell -5.8% and was flat year to date, largely due to US tariff nervousness.
  • Equal weight approach reduced losses, unlike most Mag7 heavily weight IT/Nasdaq indices.
  • ITEK Remains up 14.3% over 1yr.
  • We expect Trump’s tariffs will not impact most ITEK holdings. ITEK strong buying opportunity at current lower levels.
  • Global holdings contributed positively, China in particular (Alibaba, BYD etc).
  • Weakness mainly driven by Blockchain, Social Media & Genomics.
  • Tailwinds for ITEK include US inflation falling – latest CPI.
  • Beyond Tariffs, more business-friendly Trump Presidency expected to lower taxes and boost Tech M&A space.
  • ITEK’s overall P/E valuation at 19X, remains huge discount to Nasdaq 100 & Mag7 levels – well above 30X.
  • ITEK global mandate positive as tech convergence globalises – 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 ~50%.
  • Mega-Cap weight below 8% (Nasdaq 48%) – Morningstar.
  • Global mix: US 60.0%, China 11.4%, Japan 8.1%, Germany 3.5%.

Source of all data: Gins Global / Bloomberg as of 28/02/2025. 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

  • ITEK holdings still relatively cheap valuations, majority trading at PEs below 20X.
  • Many ITEK holdings remain very undervalued versus Magnificent 7.
  • We believe US tariffs have immaterial impact on Tech firms.
  • Trump deregulation & business friendly policies could 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.
  • Trump’s embrace of Silicon Valley executives bodes well for Tech.
  • DOGE – more US Government outsourcing of IT services including Cloud, AI, Cybersecurity likely.
  • Tariff polices/threats – boosting demand for Robotics & automation – as onshoring grows.
  • Lower US inflation prints – likely Fed lowers rates further in 2025 – boosting Tech values beyond 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.
  • Tailwinds from more Fed rate cuts, 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 boosting Big Tech values & Cloud providers.
  • Over $2.6tn spending in AI expected within decade; expected to boost Cloud spending to $3.5bn+ too.
Subtheme Returns – February
ContributionContribution (%)Average Return (%)Sum of Weight (%)
Blockchain-3.70%-22.61%14.11%
Robotics & Automation-0.17%-1.12%11.37%
Genomics-0.79%-7.13%10.41%
Cyber Security-0.09%-1.66%12.37%
Future Cars0.08%1.58%10.67%
Digital Entertainment0.27%1.91%13.04%
Cloud Computing-0.26%-2.26%13.15%
Social Media-1.20%-6.60%14.87%
Total-5.86%

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

Largest Contributors – January
HOLDINGSIndex CategoryContribution (%)Return
(%)Average Weight (%)
BYD CO LTDFuture Cars0.30%36.12%1.07%
ALIBABA GROUP HOLDING-SP ADRCloud Computing0.29%34.07%1.07%
LI AUTO INC-CLASS AFuture Cars0.24%27.86%0.98%
KONAMI GROUP CORPDigital Entertainment0.23%27.76%0.98%
LIGHT & WONDER INCDigital Entertainment0.16%26.81%0.66%
INTEL CORPRobotics & Automation0.14%22.13%0.75%
BEIGENE LTDGenomics0.18%20.62%0.92%
TREND MICRO INCCyber Security0.16%19.07%0.84%
RENESAS ELECTRONICS CORPRobotics & Automation0.12%16.94%0.69%
TAKE-TWO INTERACTIVE SOFTWARE INCDigital Entertainment0.12%14.27%0.93%
GENMAB A/SGenomics0.07%12.92%0.55%
PINTEREST INCSocial Media0.09%12.20%0.85%
SPOTIFY TECHNOLOGY SADigital Entertainment0.13%10.84%1.32%
NINTENDO CO LTDDigital Entertainment0.11%9.09%0.99%
STMICROELECTRONICS NVFuture Cars0.05%8.68%0.56%
MICROCHIP TECHNOLOGY INCRobotics & Automation0.04%8.40%0.50%
FORTINET INCCyber Security0.07%7.07%1.03%
TEXAS INSTRUMENTS INCFuture Cars0.04%6.16%0.64%
CISCO SYSTEMS INCCloud Computing0.05%5.79%0.92%
VOLKSWAGEN AG PREFFuture Cars0.04%5.54%0.71%
CLOUDFLARE INC – CLASS ACloud Computing0.06%4.99%1.38%
DRAFTKINGS INCDigital Entertainment0.04%4.55%0.96%
APTIV PLCFuture Cars0.03%4.33%0.66%
CAPCOM CO LTDDigital Entertainment0.05%4.05%0.84%
NVIDIA CORPRobotics & Automation0.03%4.04%0.80%

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

Equal Weight ETF Performance
As of 28.02.2025

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. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such 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 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.

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