A thematic ETF focusing on digital infrastructure and connectivity has been launched on the London Stock Exchange via UK-based investment platform Hanetf.
Said to be the first ETF of its kind in Europe, the strategy aims to capture companies that appear most set to benefit from the growth of these burgeoning mega trends.
According to tech conglomerate Cisco Systems, global internet traffic is expected to grow to 370% by 2022 as the world undergoes mass transformations in economic, cultural, and social needs.
The ETF tracks a newly-designed index called built by Tematica Research which comprises over 80 global companies said to be at the forefront of the digital infrastructure revolution.
Omar ElKheshen, chief executive of Quikro, which sponsors the ETF, said: “The roll-out of 5G, Cloud, IoT, VR, and other disruptive technologies, in addition to permanent lifestyle changes linked to Covid-19, will continue to accelerate the trend towards further digitisation and virtual communication.”
The Digital Infrastructure and Connectivity Ucits ETF focuses on six key sub-themes which follow the journey of data as it travels from storage to end-user. These include data centres, connectivity, networks, and digital processing.
© 2020 funds europe