MAPS Portfolio Note: Reiterating our long-term conviction in the digital economy

Recent days have seen heightened volatility in global equity markets, with technology stocks experiencing sharp corrections as investors reassess valuations and digest concerns about the returns on artificial intelligence (AI) spending.

The Invesco Nasdaq Internet ETF has declined more than 10.6% year-to-date (as of 5 Feb 2026), with many prominent technology names retreating from recent highs. While such corrections can understandably cause concern, we see this as a good time to reaffirm our long-term investment thesis for the digital economy.

MAPS exposure to the digital economy

Your MAPS portfolio is currently overweight the digital economy at 22.5% versus a neutral allocation of 20.0%, expressed through three complementary holdings: 

• Invesco NASDAQ Internet ETF – capturing innovative internet and e-commerce leaders

• VanEck Semiconductor ETF – providing exposure to the semiconductor supply chain

• Fidelity Global Technology Fund – offering diversified access to global technology innovators

This deliberate allocation shows our strong belief that technology will continue to drive long-term returns for your portfolio, even if markets remain volatile in the short-term.

Why our conviction in the digital economy stands firm

The recent selloff has not changed the fundamental drivers propelling the technology sector forward. AI represents a multi-decade secular trend with transformative potential exceeding previous technological shifts like mobile computing and cloud infrastructure. The continued digitalisation of the global economy adds another powerful engine of growth.

Large global companies, especially those in the US, remain fully committed to digital transformation and adopting AI across their businesses. Estimates from BlackRock Investment Institute point to roughly USD 5–8 trillion in AI-related capital spending through 2030, underscoring the scale of this long-term investment trend. This wave of spending is creating opportunities across the tech ecosystem, from chip manufacturers to cloud providers and software platforms.

Unlike the dot-com bubble of 1999, today's technology leaders are generating real revenues, demonstrating robust free cash flow, and exhibiting clear paths to profitability. This gives us confidence that the long-term growth story for the digital economy remains firmly in place.

The tech sector has also shown that it can grow earnings even during past market pullbacks. Importantly, most of 2025’s gains were driven by earnings growth rather than investors simply paying higher prices, which suggests that valuations remain reasonable relative to longer-term growth prospects.

Keeping your MAPS portfolio on track

Market corrections are an inevitable part of investing, especially in fast growing areas like the digital economy. For long term investors, periods of volatility are often better viewed as opportunities than reasons to retreat, and the recent pullback may prove to be an attractive entry point into a sector that continues to drive innovation, productivity and economic growth.

We are closely monitoring earnings data, capital expenditure plans and AI adoption trends to ensure our investment thesis remains on track. The key drivers of technology sector growth – digital transformation, cloud migration, AI proliferation and strong semiconductor demand – continue to look robust, and quality companies with solid balance sheets and durable competitive advantages are, in our view, well placed to deliver attractive long term returns.

At this stage, we do not see a need to adjust your MAPS portfolio positioning. Should the sell off deepen while the long term fundamentals stay intact, we will look for opportunities to selectively add to our digital economy exposure. Your MAPS portfolio is positioned to participate in this multi year growth story while maintaining prudent diversification across regions, sectors and asset classes.

Markets can move sharply on short term sentiment, but true winners are built by those who invest with a long-term horizon. Stay invested, or better yet, buy the dip.

Declaration:

For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) holds a NIL position in the abovementioned securities. The analyst who produced this report holds a position in the VanEck Semiconductor ETF.

This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.