Trustnet Magazine 64 July 2020 | Page 29

[ TECH TRENDS ] concert produced in collaboration with the game – had more than 27 million viewers. Witnessing China’s empty streets during its early lockdown, 8AM investment managers Andy Merricks and Tom McGrath bought the VanEck Vectors Video Gaming and eSports ETF, which – alongside EMQQ’s Emerging Markets Internet & Ecommerce ETF – gives their Focused fund exposure without the pressure of forcing them to pick stocks in a relatively young sub-sector. “If you buy everything, you won’t miss out on the two or three stocks that will probably come to the fore anyway, over time,” they say. “You also won’t get hammered by picking the wrong ones.” Convergence is not just happening in gaming: Porter eyes “social commerce”. “Facebook is now launching its e-commerce initiative,” she adds. “Lots of small- and medium-sized businesses that had no online focus before, that don’t need a big distribution network but might need a shopfront, can use Instagram to go on, see an item and shop through. Social commerce is a really emerging trend.” In terms of identifying the emerging themes worth pursuing, Merricks simply says: “I try and identify what the world wants. Cybersecurity has been a favoured theme for about five “When you witness a rise in a sector like tech that everyone wants to get involved in, you will inevitably see a rise in the people who want to break and steal that” years. When you witness a rise in a sector like tech that everyone wants to get involved in, you will inevitably see a rise in the people who want to break and steal that.” His vehicle of choice is the Cyber Security UCITS ETF from Legal & General Investment Management. Aanand Venkatramanan, LGIM’s head of ETF investment strategies, highlights cybersecurity as a prominent theme, with a $1trn worldwide spend estimated between 2017 and 2021. With a 350 per cent increase in ransomware attacks in 2018 and the internet of things expected to see 100 billion connected devices by 2025, Venkatramanan identifies investments across areas as broad as cloud, predictive analytics and biometrics and identification, far beyond just malware and viruses commonly associated with the theme. “That is just the tip of the iceberg,” he says. trustnet.com