Knowledge is power and in today’s digital world, that knowledge is often documented in the form of data, which could be regarded as the world’s most valuable commodity. As such, exchange-traded fund (ETF) investors should be keen to capitalize on opportunities in big data.
“Big Data is shaping up to be the most valuable commodity in the world,” a Banyan Hill article said. “You may have heard this term thrown around before. Basically, Big Data is large data sets that are collected from digital and traditional sources. This could be things like information collected from your smartwatch, your Google Maps route to work, your Netflix viewing history, etc.”
“Companies use information like this to improve what they know about customers’ spending habits,” the article added. “Like oil, Big Data is a fuel. Businesses need data to innovate and to create new technology. Technologies need data to mature, scale, and remain operational. This is why Big Data will truly be the fuel that powers the Great American Reset.”
The use of big data won’t be relegated to just technology-focused companies. Its use will permeate into other sectors that can utilize big data to its fullest potential within their own respective business models.
“Precision medicine, e-commerce, manufacturing, logistics, and transportation are just a handful of the many industries that will get a boost from Big Data,” the article said.
Another fund to get exposure to disruption via data-driven technology is Goldman Sachs Motif Data-Driven World ETF (GDAT). The fund seeks to provide investment results that closely correspond to the performance of the Motif Data-Driven World Index, which is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going rapid increase in electronically recorded data in the world and its impact on the lifecycle of data delivery and processing.
GDAT essentially provides exposure to the beneficiaries of technological innovation, regardless of sector, geography, or market capitalization. They can be used individually or collectively to help investors position their portfolios for the future.
Another fund to consider is the SPDR S&P Kensho New Economies Composite ETF (KOMP). KOMP seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho New Economies Composite Index.
Under normal market conditions, the fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index is designed to capture companies whose products and services are driving innovation and transforming the global economy through the use of existing and emerging technologies, and rapid developments in robotics, automation, artificial intelligence, connectedness, and processing power.
For more market trends, visit ETF Trends.