GinsGlobal Index Funds Anthony Ginsberg Objective Radar

With a background in indexing, Anthony Ginsberg is a staunch advocate of exchange-traded funds (ETFs). The founder and CEO of GinsGlobal Index Funds recently spoke optics About the objective investment space and presented his view of cloud computing, technology and healthcare.

Anthony Ginsberg, founder of GinsGlobal Index Funds, says investors looking for a bargain should turn their attention to the cloud optics. Whereas HANS-GINS Cloud Technology is an equal weight UCITS ETF [SKYY] Down 30.5% year-to-date (as of Oct. 20), last month it was trimming its losses, after dropping just 9.5%.

Ginsberg believes that cloud businesses’ revenue is growing an average of 40% year-over-year, boosting those businesses like Zoom [ZM] and Slack, now owned by sales force [CRM], as a result of a collective shift to work-from-home arrangements. “It doesn’t seem to be going away,” Ginsberg says. “In fact, there are projections from the expert group, Gartner research that says about 50% of all IT spending is going primarily towards the cloud by 2025.”

In fact, according to recent data from LinkedIn, working at home is here to stay in some shape or form for the foreseeable future. The professional networking platform says that before the pandemic, only 2% of the 14 to 15 million jobs created at any time would mention remote work. Today, that percentage is 15%. To ensure that they can facilitate flexible working, companies will need to continue to use the services of cloud computing companies.

These companies also have stronger business fundamentals than their 2001 Silicon Valley peers, many of which crashed after the bubble burst over their valuations. He points to the fact that strong subscription-based recurring revenue streams make it easy to predict what growth will look like on a quarterly or annual basis. From the tech industry as a whole, “I’ve grown up. A teenager is no longer doing silly things.” When you look at the way these tech companies operate today, all the cloud players are making monthly subscription revenue. [and] Cybersecurity companies are run more conservatively.”

Equal weighted approach

The bigger picture looks positive for cloud computing companies, especially at a time when growth stocks have fallen. But that’s not the only reason why Ginsberg’s ETF is recovering its losses – it seems to be doing it in good company. In comparison, the ETF Global Cloud Computing X [CLOU] It is down more than 7% in the past month, while the Fidelity Cloud Computing ETF [FCLD] It fell 8.4% over the same period. The Ark Innovation ETF [ARKK]which includes cloud computing companies such as music player spotify [SPOT] and cloud communications business Twilio [TWLO]decreased 14.6%.

However, unlike actively managed ETFs where the company’s investors make calls about which stocks they want in a portfolio and how they are weighted, the GinsGlobal fund tracks the Solactive Cloud Technology Equal Weight Index, which provides equal exposure to the world’s 75 largest companies. cloud computing space.

Includes SKYY ETF holdings extreme networks [EXTR]which manufactures wireless infrastructure equipment, and cybersecurity companies Cloud Flare [NET] And the snowflake [SNOW]among other things.

When the fund was launched in October 2018, Ginsberg said investors viewed the cloud as “a place where you had to pick a winner.” The belief was that companies would pick their fighter — Amazon, Microsoft or Google — and use it to meet all of their cloud needs, with a major player eventually emerging. In fact, as the sector has matured, companies have shown a preference for using multiple cloud service providers, picking and choosing what each of them does best.

Track Objective Trends

HANS-GINS Tech Megatrend of Equal Weight ETF [ITEK.L] A similar approach, taking the Solactive Innovative Technologies benchmark. It’s currently down 43.7% over the year so far, but like SKYY has trimmed its losses over the past month, having fallen just 8.6%. The fund has 113 holdings and is rebalanced every six months.

The exception is the HANS-GINS Indxx Healthcare Megatrend Equal Weight ETF (WELL.L), which tracks the Indxx Global NextGen Healthcare Index focused on megatrends such as genome sequencing and robotics. There’s exposure to the cloud here, too – Ginsberg points to the emergence of telehealth as one of the key trends for the sector. The ETF is currently down 33.8% for the year, and 5% in the last month. This puts him a little head iShares Healthcare Innovation ETF [HEAL.MI]which is down 5.2% over the past month.

Ginsberg says he was inspired to start GinsGlobal after looking at the success rates of active fund managers and realizing that “the majority have performed very poorly.” According to S&P Indicators vs Active Scorecard, 79% of fund managers fail to beat the S&P 500, CNBC reported earlier this year.

GinsGlobal launched in 2000, and today the company manages more than $5 billion through 14 funds. Prior to launching his own company, he worked for Barclays as Director of Foreign Services.

Ginsberg, whose background is in indexing, decided he could create his own ETFs that offered increased diversification using an equal weight approach, rather than betting big on the success of one or two companies. It’s the opposite polar approach compared to someone like Cathy Wood, who is known to favorably Tesla [TSLA] When it comes to picking stocks for their money.

He even thinks his strategy is a safer bet than ETFs that match the market indices they track — which also risk overexposure to a small number of big players, Ginsberg warns, given the massive valuations of companies like apple [AAPL] And the Amazon [AMZN].

Ginsberg, who says his money was developed with insurance companies and private banks in mind — the kind of clients who want exposure to Silicon Valley’s growth, but also don’t want to be exposed to unnecessary levels of risk.

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