Game changing innovators

Technology has been the best performing sector for the past 10 years1. This outperformance is attributable to superior fundamentals. In the past decade, tech has had the best earnings growth and profit margins2,3. This has naturally translated into higher stock prices. The coronavirus has been the cherry on top. Thanks to social distancing, more people are working from home, shopping online and using online entertainment. This has brought forward years of technological adoption. But which companies may stand to benefit? Below we look at some of the bright lights. The companies listed are all found in the ETFS Morningstar Global Technology ETF (ASX Code: TECH). Five companies fuelling the transition ...

The Future of Technology As we kick off 2021, there are six emerging technology trends that are set to define the next decade. Cloud Computing ...

Companies have been adopting robotics and automation into their businesses for many decades now. Robots, which are essentially programmable machines, offer businesses greater productivity. Machines, unlike humans, can work endlessly—days, nights, weekends and holidays. They are also better suited to repetitive and mundane tasks, which humans can find boring. But robots also offer answers to demographic questions. Thanks to the global aging population, labour shortfalls are on the horizon. Countries such as Japan – where the robotics industry is among the most developed in the world – are already leaning on robotics and automation to plug the gap. The companies listed below are all found in the ETFS ROBO Global Robotics & Automation ETF (ASX Code: ROBO). Five companies fuelling the transition ...

For some years, commentators have been comparing the thundering run in technology stocks to the dotcom bubble of the 1990s. For the past three years, technology has outperformed all other sectors, as promising new technologies have captured investors' imaginations. But comparisons of the present day to the dotcom era are arguably misguided. And claims that technology stocks are in a dotcom-style bubble are most likely wrong. Today’s tech rally vs dotcom The first difference between the two eras is the strength of the tech rally. Simply put: the dotcom rally in technology stocks was far more powerful than today’s. Had you invested $1 into the S&P 500 Information Technology Index, the major gauge of US tech stocks in June 1997, it would have turned into $3.20 by March 2000—a whopping 320% return in just two and half years. ...

Investing in thematics is a newer concept but can expose your clients to some of the major socioeconomic, environmental and technological themes of our times. For many financial advisers, the question arises of how exactly to use such investments and allocate to them within a portfolio. What is thematic investing? Thematic portfolios follow a top-down approach to investing. They look at long-term macro trends, such as robotics and automation, and then use various screens and information sources to identify the companies or assets which support this trend through infrastructure or services. Themes should be: Universal rather than specific to just one company or region1. ...

5G is anticipated to transform the world, bringing new efficiencies and opportunities to how we live and work. For investors interested in incorporating this growth theme within their portfolios, the options are broader than simply telecommunications companies. What is 5G? Fifth generation wireless (5G) is a technology infrastructure system allowing communications and data access on-the-go, much in the same way that previous generations including the currently used 4G offered. It is anticipated to transform the ‘internet of things’ and become the force for the fourth industrial revolution. The fourth industrial revolution refers to how cyber physical systems are expected to drive the next era of industrial reform and change, bringing new efficiencies and opportunities to how we live and work1. Wireless networks are integrated into our lives and 5G sees that dependency increase further in the immediate future. It is already here in its early stages. ...