The Internet of Things (IoT) things is one of the more compelling and credible disruptive technology themes and investors can directly access it via the Global X Internet of Things Thematic ETF (NasdaqGM: SNSR), the first ETF dedicated to the IoT concept.
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.
Given rapid advancements in communications technology and the subsequent expectations for quick evolution in 5G technologies, SNSR could benefit investors looking to capture opportunities in a continuously evolving market segment. And while SNSR is a practical idea for 5G exposure, IoT has myriad applications across a slew of industries. However, IoT has broad-ranging, consumer-driven applications and implications.
“Smart home devices have often felt ahead of their time. Why would I need a connected refrigerator or a smart closet? But the technology continues to improve, costs keep falling, and the software platforms that integrate devices work better than ever,” according to Global X research.
Something Special About SNSR
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.
That implies a business feel to some extent, but as Global X research confirms, IoT will be embraced on the homefront, too.
“Yet as a fully integrated smart home becomes more feasible, the war for controlling your smart home devices is intensifying. US companies like Amazon and Google are bumping up against competitors in Europe (Bosch) and South Korea (LG and Samsung) to become the brains of your connected home (and car),” according to Global X. “These firms realize that as your home and vehicles become smarter, they become your point of purchase. The smart refrigerator that detects what food you own and suggests recipes based on your latest purchases and dietary restrictions is now a virtual portal to the Whole Foods dairy aisle and can automatically reorder the milk.”
SNSR has been a stout performer over the past year, returning more than 34% during that period.
For more thematic investing ideas, visit our Thematic Investing 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.