The Global X Internet of Things Thematic ETF (NasdaqGM: SNSR), the first exchange traded fund dedicated to the Internet of Things (IoT) investment theme, is up nearly 19% year-to-date and catalysts are abound for this thematic ETF.
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.
Several SNSR components, including Dow component Cisco Systems Inc. (NASDAQ: CSCO), are at the forefront of various IoT themes and the technological shifts underpinning those themes could benefit investors over the long-term.
IoT: Touching Multiple Industries
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.
“The internet’s backbone that allows billions of devices to smoothly connect consists of an extensive infrastructure from networking and equipment makers, including wireless systems, switches, routers, controllers, servers, and other hardware and software systems,” according to Global X research. “With over 80% of the world’s internet traffic traveling across its connections, Cisco has consolidated as a leader in this market with its technology solutions.”
IoT’s reach includes well-known industries, such as healthcare, automotive and many more. SNSR holds 52 stocks from more than 10 industry groups.
“Leading companies in the IoT ecosystem are providing the technology and solutions to facilitate the monitoring, collection, and analysis of data from billions of devices,” according to Global X. “As new mobile standards like 5G are introduced and preferences evolve to demand smarter devices, we believe these companies and others in their fields are well positioned to benefit from the rise of the Internet of Things.”
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