According to Opensignal’s crowdsourced data, 5G technology is proving to be a major upgrade over current LTE technology, but how much faster? It depends on location, but tests within the United States show that it can be up to three times faster than LTE.
Per an Engadget article, Opensignal’s study showed that “peak download speeds on 5G reach just past 1.8Gbps in the States versus 678Mbps for LTE, or about 2.7 times faster. That’s owing mainly to the use of millimeter wave spectrum whose ultra-high frequencies (about 30GHz and up) allow such a huge bandwidth boost.”
Disruptive technology like robotics, artificial intelligence (AI) and machine learning is the next wave of innovation that could pave the way for the latest growth-momentum plays for investors. In the not-so-distant future, 5G technology could be a major disruptor and one such opportunity to take advantage of this is the 5G ETF (FIVG) from Defiance ETFs with an expense ratio of 0.30%.
Investors who missed out on the serendipitous run of FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks can look to capitalize on disruptive tech options in 2019 like 5G technology. 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.
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 does this by tracking The BlueStar 5G Communications Index, and FIVG attempts to invest all, or substantially all, of its assets in the component securities that make up the Index.
Related – Defiance ETFs: Investment Case for FIVG
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.
“When we built this product, we wanted to ensure that we were capturing the entire ecosystem that goes into this 5G buildout because it’s not just about Verizon and AT&T giving you 5G access on your phone, but the infrastructure that’s going to be built out with that,” said Paul Dellaquila, Global Head of ETFs at Defiance ETFs.
For more market trends, visit ETF Trends.