As technology advances and industries look to the 5G networking for the next big thing in global connectivity, investors can also target the quickly growing industry through a targeted exchange traded fund strategy.
“The 5G ETF tries to capture, in our eyes, the big breakthrough in 2019,” Paul Dellaquila, Global Head of ETFs at Defiance ETFs.
In the not-so-distant future, 5G technology could be a major disruptor, and investors can capture this industry disruptor through the newly launched Defiance 5G ETF (FIVG).
5G technology will use a higher frequency band versus the current 4G technology standard, resulting in faster transmission of data. Being able to transmit copious amounts of data at a faster rate is certainly of benefit for wireless companies and their users, but 5G could be a major disruptor in various industries.
For example, Dellaquila explained that 5G could help hospitals and provide healthcare to more impoverished areas of the world where they do not have the necessary infrastructure to receive expert advice and services.
The possible applications of 5G technologies are only in the exploration stages, and the possibility of returns is uncertain and may not be realized soon. Nonetheless, it presents an opportunity that could see early adopters reap the benefits, especially if the technology is utilized to its fullest capabilities.
“5G will be taking all the tech that we’ve been looking from augmented reality to A.I. to robotics to a whole other level because it’s going to be faster, it’s going to be lower latency and it’s going to give access to people across the globe,” Dellaquila added.
Related: Defiance ETFs Launch 5G Technology Fund ‘FIVG’
The Defiance Next Gen Connectivity ETF is the first ETF to emphasize securities whose products and services are predominantly tied to the development of 5G networking and communication technologies. FIVG tries to reflect the performance of the BlueStar 5G Communications Index.
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