Blockchain leads the way as tech bounces back on inflation and interest rate soft landing hopes

  • Strong tech bounce back predicted for 2023 as digital revolution accelerates benefiting multiple themes
  • Blockchain is the strongest subtheme with future cars and EVs digital entertainment robotics and cloud also gaining
  • HANetf’s cloud technology focused SKYY rises 10.66% and ITEK focused on tech megatrends gains 15.88% in a month

February 2023 London

Anthony Ginsberg Manager of the HAN-GINS Cloud Technology UCITS ETF (SKYY) and HAN-GINS Tech Megatrends Equal Weight UCITS ETF (ITEK) says Blockchain is emerging as one of the strongest sub-themes as the wider technology sector builds for a strong bounce-back in 2023 after recent sell-offs.

He says lower US inflation and a slowdown in US Federal Bank rate rises are driving hopes for a soft economic landing while the accelerating digital revolution is increasing opportunities across a range of tech investment themes.

The weaker US dollar is adding to momentum with funds that have more global exposure and less concentration in the US and mega stocks such as the FAANGs benefiting.

The HAN-GINS Cloud Technology UCITS ETF (SKYY) gained 10.66% in January while HAN-GINS Tech Megatrends Equal Weight UCITS ETF (ITEK) climbed 15.88% . The strongest sub-theme in ITEK was Blockchain which rose 7.8% while future cars and EVs digital entertainment robotics and cloud also performed strongly.

SKYY is the only SFDR Article 8 cloud computing ETF. It provides exposure to the global cloud industry including SaaS PaaS and IaaS — and performs strongly as a result. Asia’s cloud sector is one of the fastest-growing per capita globally due to speedy 5G connections with mobile gaming the fastest-growing gaming area.

The expected bounce-back this year follows a tough 2022 -SKYY is down 24.5% over 12 months and ITEK 25.65% -but both are benefiting from being well-diversified. ITEK has 120 holdings and the top 15 leaders for each sub-theme are well-established and profitable while SKYY’s 75 holdings and equal-weighted approach means less large cap exposure.

Anthony Ginsberg added:

“The digital revolution is increasing and that is contributing to a positive outlook for quality tech megatrend holdings. Cloud technology is enabling the global growth with the recovery in Chinese tech stocks boosting gains.

“Cloud underpins video streaming online gaming mobile 5G and cybersecurity services and 50% of corporate IT spend is shifting to the Cloud by 2025. It is a tipping point when we see strong global adoption rates.

“Wider tech megatrends include the growth of EVs around the world and the expansion of Genomics with companies involved in the sector potential targets for pharma giants.”

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