Space Investment Could Give 5G ETFs Gains That Are Out of This World

If users want to go where no other user has gone before, they’ll need the assistance of faster data streams via forthcoming technology like 5G. The space sector is quick to realize this trend and is already taking measures to capitalize on the disruptive technology, which will help exchange-traded funds

“Entities ranging from SpaceX to Amazon are launching (or may launch soon) huge numbers of new satellites that can carry the extra bandwidth,” wrote Elizabeth Howell in  “And cellular network providers around the world are upgrading their equipment on the ground to meet the expected future demand. This new technology is being built out for new 5G networks. It’s touted as a big leap over current 4G technology, which allows you to do data-intensive things like stream Netflix.”

Who are the early adopters thus far in the space arena who are incorporating 5G as part of their core business?

“Many space entities are rushing to be trendsetters in 5G,” Howell wrote. “For example, SpaceX has received approval to launch nearly 12,000 Starlink internet satellites (and recently applied to loft up to 30,000 more). In May, SpaceX launched its first 60 Starlink craft, which operate at a low-Earth-orbit altitude of about 342 miles (550 kilometers).”

A 5G Fund Option

One fund to consider is the 5G ETF (FIVG) from Defiance ETFs, which carries 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.

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.

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