By Alpha Source
- The transformative wave of innovation that IoT is set to unleash will be of historic proportions.
- Investors have yet to notice the unusually high growth potential of the Internet of Things, especially in the context of a 5G environment.
- SNSR, the Global X Internet of Things ETF, offers investors a well-designed gateway to tap this promising field.
After a bumpy ride this year, the tech sector is again leading the race in terms of performance. This is in line with improving risk-appetite, which is expected to grow further as equities continue to set new records. The resilience of this bull-market, underpinned by central bank infused liquidity along with the implicit promise of unconditional support, should not be underestimated, as this year’s broad-based market gains showcase.
Within the tech sector, a nascent field that holds enormous potential over the longer-term is the Internet of Things (IoT), which is an all-encompassing term that describes the development, manufacture and use of connected devices. In fact, one could argue that IoT stands at the epicenter of disruptive technologies, considering the vast array of commercial uses it can unleash.
Promising tech segments such as artificial intelligence and big data, robotics and automation, cloud computing, autonomous vehicles, and more broadly smart infrastructure, can all benefit greatly from the advent of IoT. In this context, it is interesting that investors have yet to fully appreciate the growth potential of this niche market, as evidenced by the lack of ETFs directly focused on IoT.
The most likely scenario is that this oversight will be fleeting, but for now we are dealing with a significant investment opportunity. Nonetheless, the task of identifying the companies that are likely to spearhead the IoT revolution is quite challenging. And this is where the Global X Internet of Things ETF (SNSR) comes into play.