This Tech-Multimedia ETF Is Beating Stock ETF Performance Friday

While the majority of stocks are showing losses on Friday, Cisco has climbed 1.28% amid news that Schneider Electric and Cisco have joined forces on connecting building management systems to Internet Protocol (IP) networks, helping a tech ETF in the process whether the stock selloff.

The tech two companies said they have created, tested, and approved designs to connect operational technology and IT building management systems for smart buildings. Schneider Electric SE is up over 1% on the news.

Now more than ever, smart buildings are becoming digitized for enhanced efficiency. The solution from Schneider Electric and Cisco allows multiple Schneider Electric EcoStruxure Building IP architecture topologies to mix with existing building layouts using Cisco industrial Ethernet switches to connect to Schneider’s SmartX IP Controllers.

The combined solution conserves time and resources for clients, according to Schneider and Cisco. It also can regulate consistent identity-based security policies on network infrastructure, and segment, identify and mediate cyber attacks as they happen.

Large college campuses and universities are among the organizations that could benefit from such technology and are starting to utilize IP-enabled building management systems for enhanced performance and better security. Cisco and Schneider mentioned a deployment at the University of Notre Dame in Indiana as one example.

“Cisco is excited to partner with Schneider Electric, delivering comprehensive IP-enabled Building Management System solutions to enable the seamless migration of the University of Notre Dame’s infrastructure to a converged architecture,” said Mike Austin, senior director, Cisco Global Partner Organization, in a statement. “By combining Cisco’s IT innovation with Schneider Electric’s OT innovation, we are uniquely positioned to deploy this solution in a highly scalable and secure manner.”

The iShares North American Tech-Multimedia Networking ETF (IGN), which counts Cisco in its allocations is down only 0.45% Friday, amid the announcement, while the broader stock indexes and underlying ETFs are off over 2%.

For investors interested in the fund, the iShares North American Tech-Multimedia Networking ETF seeks to track the investment results of an index composed of North American equities in the multimedia and networking technology sectors. The ETF offers exposure to telecom equipment, data networking, and wireless equipment companies, as well as targeted access to North American multimedia networking stocks, and can be used to express a regional sector view. It has an expense ratio of under 0.5%.

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