The coronavirus pandemic is disrupting a slew of global supply chains, affecting scores of industries in the process, but the 5G rollout appears undeterred, indicating the Defiance 5G Next Gen Connectivity ETF (NYSEArca: FIVG) is worth revisiting.
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 coronavirus should not significantly hinder U.S. operators’ next-generation 5G deployment strategies this year and could even spur quicker adoption of future use cases for the mobile technology, analysts said,” reports S&P Global Market Intelligence.
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.
5G Remains Undaunted By COVID-19
There are some indications that wireless communications providers are stepping up their 5G games as more workers are working from home and the coronavirus forces increased the use of streaming entertainment platforms.
“As the novel coronavirus requires more people to stay at home, top U.S. wireless carriers — T-Mobile US Inc., Verizon Communications Inc., AT&T Inc., and Sprint Corp. — have been busy accommodating the surge in network traffic by requesting additional bandwidth from the government to meet customer demands for more data,” notes S&P Global Market Intelligence. “While the companies’ response efforts could temporarily halt their 5G rollout plans, analysts expect the impact to be short-lived.”
The 5G rollout is expected to be massive and present investors with significant opportunities.
5G means quicker downloads, much lower lag and a significant impact on how we live, work and play,” according to Verizon. “The connectivity benefits of 5G are expected to make businesses more efficient and give consumers access to more information faster than ever before.”
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.
After gaining almost 6% on Thursday, FIVG is higher by 10.55% over the past week.
For more on thematic ETFs, please 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.