The HAN-GINs Cloud Technology UCITS ETF (LON:SKYY) delivered a return of 21.49% over the past 12 months and its co-creator expects an acceleration in growth in the cloud sector in coming years.
Anthony Ginsberg, who co-created the cloud computing-focused ETF using the HANetf platform, predicted that mergers and acquisitions will be one catalyst for in the cloud space, particularly amongst cloud security firms.
“Due to COVID-19, cloud technology is increasingly embedded into mainstream work-life activities – from digital entertainment/streaming services to video conferencing, social media and remote learning,” Ginsberg said.
“Given the flexibility cloud subscription services affords users and the significant cost savings versus maintaining onsite hardware, IT budgets are increasingly shifting away from hardware to cloud.”
He said global cloud spending is expected to hit a new all-time high for the third quarter as work-from-home behaviour becomes ingrained amongst many companies.
“While the US is the most built-out across cloud, Europe and developing nations are where much of the future growth is expected.”
The HAN-GINs ETF tracks the Solactive Cloud Technology index, which was specifically developed for this ETF to provide exposure to companies active in cloud service provision or producers of equipment or software focused on cloud computing.
The biggest holdings are in companies such as US giants Amazon.com, Apple, Nvidia Corp, Adobe and Salesforce, plus rising stars Zoom Video, Pareteum and Inseegro, plus big Chinese names Alibaba and Kingsoft.