Ask the Manager: Anthony Ginsberg on Investing in the Next Wave of Tech Megatrends

More M&A and related corporate delas are likely in such an environment too. Plus a sizable amount of cash remains on the sidelines in Money Market funds currently. Lower rates will drive more of this cash into equities.

Do you think investors are too exposed to the “Mag 7"?

While the Mag7 have rallied hard since April, we believe investors should be more broadly exposed to the Tech industry – via subthemes not fully covered by the Mag7.

These include Cybersecurity, Robotics, Quantum Computing, Defense Tech, AI, Cloud Computing, Genomics, Future Cars and Digital Entertainment.

Many Tech funds including the Nasdaq are very narrowly focused on the Megacaps and often ignore these other fast-growing subthemes.

The convergence of tech across these multiple subthemes as well as globally – should encourage investors to be more diversified.

Our Tech Megatrends ETF has sizable exposure outside of the US ( with the US account for just 52%), with Asia our largest non US weight approaching 30%.

Against that backdrop, why was now the right moment to update ITEK’s methodology and expand its coverage of technology megatrends?

ITEK is an ETF designed to capture the technology megatrends reshaping the world. Technology evolves over time, as a result of new innovation and, importantly for investors, the commercial viability of new innovations. As a result, new tech-based investment themes emerge, such as quantum computing.

At the same time, the geopolitical context of technology changes. Notably, in recent years the geopolitical environment has created a new focus on defence and security, and from that emerges increased investment in defence technologies.