Anthony Ginsberg, CEO of GINSGLOBAL Index Fund joined Steve Darling from Proactive to discuss the performance and strategy of their Tech Megatrend ETF in an interview. The fund, which was up almost 46% last year, differentiates itself by equally weighting 120 holdings across 15 leading players in each of eight sub-themes, including cybersecurity, cloud computing, AI, robotics, blockchain, electric vehicles, gaming, and more. This approach makes it broader than traditional IT funds and covers a wide range of digital disruption areas.
Ginsberg highlighted the convergence across these themes, exemplified by Microsoft's acquisition of a major gaming company for $75 billion, viewing it as a move into the social media/online gaming space.The discussion also touched on the global nature of the tech megatrend, with 60% of the fund's focus being outside the U.S., showcasing its international appeal. The importance of cybersecurity and cloud computing was emphasized, especially in the context of the work-from-home phenomenon and the growing online gaming sector, which have created strong demand for these technologies.
Ginsberg noted the trend of on-shoring in the U.S., boosting the valuations of robotics companies, and the success of streaming services like Netflix. Anticipating a lot of mergers and acquisitions (M&A) activity due to lower interest rates and companies sitting on significant cash reserves, Ginsberg pointed out that the fund's holdings are not overvalued, with a price-to-earnings (P/E) ratio below 20. This indicates potential for value in the mid-cap, large-cap, and mega-cap spaces, despite some companies having run hard in terms of stock price increases.
