How to gain exposure to the automation macro trend

How to gain exposure to the automation macro trend

29 January 2020 from Mikael Syding

Solactive's Nordic Industry 4.0 Performance Index consists of 20 Nordic technology companies focusing on manufacturing industry and telecom. The index is more or less equal weighted between the included companies. The largest index member, the Finnish telecommunications company Elisa, has a weight of 5.3% and the smallest, Valmet, has a weight of 4.6%. Some of the other 18 companies are Vestas, Hexagon and Veoneer. The idea of the index is to provide easy exposure to the macro trend of increasingly independent factories, where the machines coordinate their work with each other to an increasing extent without the involvement of people.

As the expansion of 5G networks and, among other things, better autonomous imaging and
navigation systems, more and more of the manufacturing industry can be automated. But of
course, this development does not happen by itself. Nordic Industry 4.0 has brought together
the companies in the Nordic countries that are most important in realizing the vision of
autonomous manufacturing.

Although the stock market is currently slightly jittery, due to increased risk aversion in the wake
of the corona virus, it will hardly affect the long-term development of the companies in the index. In the short term, companies such as Atlas Copco, Volvo, Sandvik, Epiroc and SKF can of
course experience reduced demand when China temporarily slows down, and not least the
shares may be subject to selling pressure. In a larger perspective, however, it will hardly be
more than a temporary setback. If investors should worry t all about the long term
consequences, it’s rather the travel industry, including airlines and hotels, you should watch out
for, as long as it is unclear how large the spread and effects of the disease will be.

The transition to Industry 4.0 is not something that happens overnight, but is a long-term
development. The transition can contribute to sustained higher growth for the companies in the
index. For those of you who want to invest in prominent Nordic technology companies in one of
the most exciting macro trends in the 2020s, it may be worth taking an extra look at the
companies included in Solactive's index, or to make it easy to consider Vontobel's tracker that
captures the development for all 20 companies at the same time.

Bull & Bear-Certificates

 Symbol ISINIndex reference instrumentFactorTypeCur.BidAsk 
BULL APPLE X10 VON1
DE000VF533C5 Apple Inc. 10.00 Long SEK 0.002 -
BULL APPLE X10 VON10
DE000VP2RC04 Apple Inc. 10.00 Long SEK 0.052 0.056
BULL APPLE X10 VON11
DE000VP3MTV0 Apple Inc. 10.00 Long SEK 0.042 0.046
BULL APPLE X10 VON12
DE000VP3NQ50 Apple Inc. 10.00 Long SEK 0.02 0.024
BULL APPLE X10 VON15
DE000VP9V6U9 Apple Inc. 10.00 Long SEK 0.108 0.112
BULL APPLE X10 VON14
DE000VP9VHN0 Apple Inc. 10.00 Long SEK 0.222 0.226
BULL APPLE X10 VON18
DE000VV11SJ7 Apple Inc. 10.00 Long SEK 0.90 0.91
BULL APPLE X10 VON19
DE000VV19AU5 Apple Inc. 10.00 Long SEK 2.38 2.41
BULL APPLE X10 VON20
DE000VV2K3W0 Apple Inc. 10.00 Long SEK 6.90 6.97
BULL APPLE X10 VON21
DE000VV3R221 Apple Inc. 10.00 Long SEK 16.49 16.65
BULL APPLE X10 VON22
DE000VV67GW7 Apple Inc. 10.00 Long SEK 48.26 48.72
BULL APPLE X10 VON23
DE000VV8Z9Y0 Apple Inc. 10.00 Long SEK 111.63 112.69
BULL APPLE X10 VON17
DE000VX8WXW8 Apple Inc. 10.00 Long SEK 0.446 0.452
BULL WTI X10 VON53
DE000VV34D70 WTI Light Sweet Crude Oil Future Jan 2023 10.00 Long SEK 0.032 0.034
BULL WTI X10 VON46
DE000VX5RHK2 WTI Light Sweet Crude Oil Future Jan 2023 10.00 Long SEK 0.001 -
BULL WTI X10 VON48
DE000VX8XQQ2 WTI Light Sweet Crude Oil Future Jan 2023 10.00 Long SEK 0.002 -
BULL WTI X10 VON49
DE000VX8ZH15 WTI Light Sweet Crude Oil Future Jan 2023 10.00 Long SEK 0.002 -
BULL WTI X10 VON52
DE000VX94FH0 WTI Light Sweet Crude Oil Future Jan 2023 10.00 Long SEK 0.016 0.02
BULL WTI X10 VON51
DE000VX9K3V1 WTI Light Sweet Crude Oil Future Jan 2023 10.00 Long SEK 0.008 0.015
BULL WTI X10 VON50
DE000VX9KN39 WTI Light Sweet Crude Oil Future Jan 2023 10.00 Long SEK 0.01 0.015

Legal notice

This information is in the sole responsibility of the guest author and does not necessarily represent the opinion of Bank Vontobel Europe AG or any other company of the Vontobel Group. The further development of the index or a company as well as its share price depends on a large number of company-, group- and sector-specific as well as economic factors. When forming his investment decision, each investor must take into account the risk of price losses. Please note that investing in these products will not generate ongoing income.

The products are not capitalprotected, in the worst case a total loss of the invested capital is possible. In the event of insolvency of the issuer and the guarantor, the investor bears the risk of a total loss of his investment. In any case, investors should note that past performance and / or analysts' opinions are no adequate indicator of future performance. The performance of the underlyings depends on a variety of economic, entrepreneurial and political factors that should be taken into account in the formation of a market expectation.

05/12/2022 18:54:50

 

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