Invest in the Internet of Things with the 'SNSR' ETF

The Global X Internet of Things ETF (SNSR) could be getting an added boost with a rise in demand for medical sensors. The ETF’s largest holding, Switzerland-based semiconductor company STMicroelectronics, operates within this arena.

“Market Research Future (MRFR) predicts the global sensor market size to reach USD 228.08 billion, registering a 6.22% CAGR from 2019 to 2026 (forecast period),” a GlobeNewswire press release noted. “The integration of sensors into any device improves its functionality, accuracy, and efficiency, increasing its automation. This, in turn, leads to a high growth rate in the sensor market.”

“The sensor market outlook appears promising, showing significant opportunities in the automotive, consumer electronics, healthcare, industrial, and aerospace & defense industries,” the release added. “Increased automation due to a spurring increase in various industries has an impact on the dynamics of the sensor industry. In addition, emerging trends, such as sensor miniaturization, growing advances in IoT & IIoT technology, and the spread of industry 4.0, and the emergence of 5.0, promote market growth.”

SNSR seeks to invest in companies that stand to potentially benefit from the broader adoption of the Internet of Things (IoT), as enabled by technologies such as WiFi, 5G telecommunications infrastructure, and fiber optics. This 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. The fund offers investors:

  • High Growth Potential: SNSR enables investors to access high growth potential through companies at the leading edge of the IoT and related technologies like 5G, which are transforming how humans interact with tech-enabled devices and how those devices interact with each other.
  • An Unconstrained Approach: SNSR’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
  • ETF Efficiency: In a single trade, SNSR delivers access to dozens of companies with high exposure to the IoT theme.

SNSR is up 9% to start the year and 23% the last few months.

SNSR Chart

STMicroelectronics Beats Its Q4 Expectations

STMicroelectronics reported earnings of $582 million in the fourth quarter of 2020. The 63 cents per share results bested Wall Street’s expectations by a penny as an average estimate of three analysts surveyed by Zacks Investment Research predicted 62 cents per share.

“The chip company posted revenue of $3.24 billion in the period,” a Greenwich Time article said. “For the year, the company reported profit of $1.11 billion, or $1.20 per share. Revenue was reported as $10.22 billion. STMicroelectronics shares have risen 2% since the beginning of the year.”

The stock is up 42% the past year.

STM Chart

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