Our exchange-traded fund (ETF) seeks to capture the leading 120 technology companies globally. We equally weight eight key subthemes: social media; cloud computing; AI & robotics; cybersecurity; digital entertainment; blockchain; genomics and future cars. It is difficult to time the cycles of various areas of the tech sector, and every year there are different winners. By equally weighting the top-15 global leaders in each subtheme, we aim to avoid over-concentration in the US and the “Magnificent Seven”. This makes the ETF a truly global play and helps to reduce volatility and risk. Below we analyse three stocks in the ETF that have caught our attention.
Netflix: a streaming company set for success
Netflix has also intensified efforts to combat password sharing, an issue estimated to have cost the company billions in lost revenue over the years. By implementing stricter account-sharing policies and offering new pricing tiers for additional users, Netflix is unlocking a new revenue stream without significantly increasing the cost of its content.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Netflix is also venturing further into the online gaming sector. If successful, this diversification could deepen users’ engagement, further strengthening the recurring revenue model.
Cybersecurity is another area of interest, given how the proliferation of cloud computing and AI tools has greatly expanded the scope for threats. To combat remote hacking, the US government is outsourcing more to cybersecurity players, and Congress is likely to pass legislation in this area.
Zscaler (Nasdaq: ZS), a leading name in cloud-based cybersecurity, has seen its stock rise 53% this year thanks to this heightened demand for digital protection. Zscaler offers real-time, zero-trust security that has proved effective in safeguarding remote work environments and complex digital networks.
The company reported a 23% year-on-year increase in its latest quarterly earnings, demonstrating strong operational execution and demand for its services. With high customer-retention rates and a robust innovation pipeline, Zscaler is becoming a core holding for investors seeking exposure to digital infrastructure.
The growth of electric vehicles (EVs) has made BYD (Hong Kong: 1211), the world’s largest EV maker and backed by Warren Buffett over a decade ago, a focal point for us. In the fourth quarter of 2023, BYD dethroned Tesla as the world’s top EV maker, selling more battery-powered vehicles than its US rival. BYD’s vehicles are generally more affordable than Tesla’s, making them attractive to middle-income consumers in emerging markets.
BYD’s success is rooted in its vertically integrated business model, which spans battery production, semiconductor supply, and vehicle assembly.
Meanwhile, BYD’s battery technology is proving useful beyond consumers’ cars. In the UK, its advanced lithium-iron phosphate (LFP) batteries are powering London’s next-generation electric double-decker bus, the BD11.
These buses feature hub motors that allow a remarkably tight eight-metre turning radius, ideal for navigating the city’s narrow streets. With international expansion, government partnerships, and increasing worldwide adoption of EVs, BYD remains a key player to watch.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
-
Ofgem energy price cap to rise by 2% from OctoberGas and electricity bills are set to increase in the final quarter of 2025 for millions of people on the energy price cap
-
73% of savers plan to rely on partner’s pension in retirementA new survey suggests the majority of people may lack financial independence in retirement, with almost three-quarters set to rely on their partner’s pension
-
'The rise and fall of Kodak is a lesson for the tech giants'Opinion The long decline of Kodak – a once-dominant company – shows why no business is safe from disruption, says Matthew Lynn
-
What we can learn from Britain’s "Dashing Dozen" stocksStocks that consistently outperform the market are clearly doing something right. What can we learn from the UK's top performers and which ones are still buys?
-
The most likely outcome of the AI boom is a big fallOpinion Like the dotcom boom of the late 1990s, AI is not paying off – despite huge investments being made in the hope of creating AI-based wealth
-
The rise of Robin Zeng: China’s billionaire battery kingRobin Zeng, a pioneer in EV batteries, is vying with Li Ka-shing for the title of Hong Kong’s richest person. He is typical of a new kind of tycoon in China
-
Europe’s forgotten equities offer value, growth and strong cash flowsOpinion Jonathon Regis, co-portfolio manager, Developed Markets UCITS Strategy, Lansdowne Partners, highlights forgotten equities he'd put his money in
-
How retail investors can gain exposure to Lloyd’s of LondonIt’s hard for retail investors to get in on the action at Lloyd’s of London. Here are some of the ways to gain exposure
-
The goal of business is not profit, but virtueOpinion Serve your customers well, and the profits will follow, according to a new book. It rarely works the other way around, says Stuart Watkins
-
Picton Property: a deep-value property playPicton Property has all the qualities of a future takeover target
