The 5G rollout is building momentum and that should benefit exchange traded funds, such as the Global X Internet of Things Thematic ETF (NasdaqGM: SNSR).
SNSR targets the Indxx Global Internet of Things Thematic Index. IoT “includes the development and manufacturing of semiconductors and sensors, integrated products and solutions, and applications serving smart grids, smart homes, connected cars, and the industrial internet,” according to Global X.
SNRS’s index is designed to provide exposure to exchange-listed companies in developed markets that facilitate the Internet of Things industry, including companies involved in wearable technology, home automation, connected automotive technology, sensors, networking infrastructure/software, smart metering, and energy control devices.
“The Internet of Things (IoT), like 5G, is a standalone theme. But due to the intersection between the two, the latter brings opportunity for the former, which is potentially rewarding for SNSR,” reports InvestorPlace. “One of the primary reasons that 5G and IoT belong in the same conversation is that both themes revolve around enhanced connectivity. That’s how they play off each other and that’s why SNSR is a practical, if not under-appreciated, 5G ETF.”
As we get ready for the next step in the telecommunications evolution, investors should be prepared for the onset of the 5G network and other technology innovations, and how it will reshape the economy.
IoT’s reach includes well-known industries, such as healthcare, automotive and many more. SNSR features exposure to more than 10 industry groups.
The concept is that 5G will be ubiquitous, and someday gadgets like your vacuum cleaner or lawnmower might use 5G. It’s often claimed to be one of the most important milestones in technology and, with companies like Verizon creating ads that suggest, it offers “unprecedented power” for consumers. 5G will be more reliable, faster, and pervasive.
IoT vendors “are working closely with manufacturing enterprises to provide more secure solutions tailored to their clients’ operations and digital transformation strategy,” according to KPMG. With the help of 5G networks, IoT platforms will be able to connect solutions and sensors to monitor entire processes.”
5GG 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 more on disruptive technologies, visit our Disruptive Technology Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.