Internet of Things (IoT) is not just another catchy technology concept. It is a tangible, accessible investment theme. Some of that access is provided by the Global X Internet of Things Thematic ETF (NasdaqGM: SNSR), the first exchange traded fund dedicated to IoT investing.
SNSR is considered a thematic ETF. Thematic strategies tend to be alpha-seeking, have a long time horizon and are growth oriented. The thematic investments also transcend classic sector, industry and geographic classifications as many overlap.
SNSR, which is two years old, 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.
“According to one estimate, IoT will be worth more than $6 trillion by 2025,” reports Bloomberg. “The ETF is full of many things, primarily semiconductor companies, 30% allocation. But also smart grids, smart homes, connected cars and the industrial Internet.
IoT Supportive Data
Other data points confirm the coming IoT boom.
“A study shows that by the end of year 2020, there will be more than 30 billion devices connected with the information grid and the market size will be double the size of pc, smartphone and connected cars and wearable’s market. The global IoT market is expected to grow with a CAGR of ~ 19.75%, and is expected to grow US ~ 2488 Billion by the end of 2022,” according to Market Research Future.
SNSR held 46 stocks at the end of the second quarter, over 59% of which are U.S. companies. Switzerland is the ETF’s second-largest geographic exposure at 19.63%. Most of the ETF’s geographic exposures are classified as developed markets.
“IoT or Internet of things can be explained as a network which helps to connect multiple smart devices enabled with software and network connectivity and exchange information between each other and with the server. Today, IoT is a billion-dollar market and is growing continuously,” according to Market Research.
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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.