HAN-GINS Tech ETF says cloud infrastructure spending is taking off as IT moves away from hardware
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Anthony Ginsberg, Co-creator of The HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK)
- Cloud infrastructure spending forecast to double within three years after jumping 35% to nearly $42 billion in the first quarter
- Multi and Hybrid Cloud is increasingly popular due to open architecture enabling more firms to switch
- Rebalancing at Han-GINS Cloud Technology UCITS ETF (SKYY) has expanded holdings from 50 to 75 and captures smaller and more innovative companies
- Han-GINS Cloud Technology UCITS ETF offers broad exposure to all areas of the Cloud revolution including infrastructure, security, platform, and software as a service
Cloud infrastructure spending globally is set to double to almost $500 billion within three years taking the majority of corporate IT spending as companies move away from hardware further boosting the Cloud revolution, the HAN-GINS Cloud Technology UCITS ETF (SKYY) says.
SKYY, which is up 35.22% over the past 12 months, believes a clear trend is the move to more hybrid and multi cloud platforms and infrastructure with companies such as IBM, Salesforce and SAP benefiting from open architecture allowing the easy flow of data across multiple Clouds. It expects 60% of companies to use public Cloud by the end of the year and 25% of developers will use serverless.
Total customer spending on Cloud infrastructure exceeded $40 billion for the first time in Q1 this year with the flexibility of contracts and improved US COVID situation increasing corporate confidence in committing to longer term deals.
Gaming and video streaming is adding to the expansion of Cloud usage with Gaming already treble the size of the Hollywood Box Office. Microsoft is to launch its cloud gaming service on Xbox consoles shortly. Cloud security firms are benefiting from increased spending in response to the growing number of hacking and cybersecurity attacks.
SKYY has expanded its total holdings from 50 to 75 to better capture the range of companies in the sector and its updated Equal Weighting approach means each holding now averages around 1.3%. Standout recent performers have included Alphabet, Nvidia, Intel Fortinet and Tara Data which is up 122.44% year to date. When you trade ETFs, your capital is at risk.
Anthony Ginsberg, Managing Director of GINSGlobal Index Funds said: “The majority of IT corporate spend is moving away from onsite hardware and servers to remote Cloud usage with data centre chip revenues and Hyperscale Cloud seeing significant revenue boosts during COVID.
“The growing popularity of Hybrid Cloud means many more businesses can now embrace the Cloud ensuring faster scaling up for business globally, using multiple cloud platforms to move data. Cloud usage in Asia for online gaming and streaming has made the region the fastest growing area for digital entertainment.
“SKYY is now even more representative of the Cloud theme globally with 75 holdings expanding from 50 and our updated Equal Weighted approach captures smaller and more innovative Cloud companies with each holding averaging around 1.3%.”
SKYY, which is distributed on the HANetf white-label platform, tracks the Solactive Cloud Technology Equal Weight Index (Net Total Return) – an index designed to provide equal weight to global companies with significant exposure to cloud computing technology.
Source: ETFWorld.co.uk
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