Education technology, electric vehicles, social media and digital entertainment look like being the fastest growing tech megatrends in 2021, according to the co-creator of a technology exchange-traded fund (ETF).
Anthony Ginsberg, who created the HAN-GINS Tech Megatrend Equal Weight UCITS ETF (LON:ITEK) working with ETF specialists HANetf, said the second wave of COVID-19 will further embed remote technology trends as ‘mainstream’.
This will make it increasingly unlikely they will be dropped once the world returns to some form of normality, he said.
“E-commerce in particular is building on the lockdown, and gaining long-term competitive advantages over more bricks and mortar stores,” Ginsberg said.
He and his team believes surveillance and cybersecurity will become even bigger issues this year, and expects more merger and acquisition activity in the IT security sector.
“As technology and remote working becomes increasingly global, we expect all of the sub-themes in ITEK to benefit from the growth – increasingly fuelled by Asia-Pacific’s fast growing adoption rates.
“We are also optimistic about the US – the largest market for us – as the new Biden administration will support clean-energy and tech far more than past presidencies.”
As for electric vehicles, Ginsberg expects cars to be a key winner, benefiting from likely subsidies, making EV cars more affordable.”
The Tech Megatrend ETF, which tracks the Solactive Innovative Technologies index, has risen over 70% since the start of 2020.
The main equities the index includes are focused on trends including robotics & automation, cloud computing & big data, cybersecurity, future cars, genomics, social media, blockchain and digital entertainment.
Main holdings show the influence of the Asia theme, including Nio Inc (NYSE:NIO), Bilibili Inc (NASDAQ:BILI), Roku Inc (NASDAQ:ROKU), Baidu Inc (NASDAQ:BIDU) and Samsung, as well as other big holdings such as Riot Blockchain Inc (NASDAQ:RIOT), EXACT Sciences Corporation (NASDAQ:EXAS), BioNTech (NASDAQ:BNTX) and Tesla Inc (NASDAQ:TSLA).
HANetf, the ETF specialist on whose platform the fund was created, surpassed US$1bn in assets under management last month, having seen spectacular growth in recent weeks in products such as its exchange-traded Bitcoin ETC and the EMQQ Emerging Markets Internet and E-commerce UCITS ETF (LON:EMQP).