3 5G Focused ETFs to Know About
Gain exposure to the fifth generation of cellular technology
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5G is the fifth-generation technology for broadband cellular networks. It was introduced in 2016 and began being deployed by cellular networks and phone makers in 2019. What is the big hype about 5G? The main advantages of 5G include higher download speeds (1 gigabit per second or more), lower latency (1 millisecond or less), and increased capacity for cellular networks. What does that mean? It means we get faster download speeds, less lag, and a lower likelihood of losing signal on a cellular network.
5G also opens the door for the Internet of Things (IoT), where we can have more devices and machines connected to the internet for greater automation and connected technologies. At the moment, some IoT devices you may be familiar with include smart speakers, smart thermostats, and self-driving vehicles. If you are looking to gain exposure to companies that will be innovating in the 5G space, the following 3 ETFs will allow you to do so with ease:
1. Global X Internet of Things ETF (SNSR)
2. First Trust IndXX NextG ETF (NXTG)
3. Defiance 5G Next Gen Connectivity ETF (FIVG)
1. Global X Internet of Things ETF (SNSR)
SNSR is an ETF that seeks to track the performance of the Indxx Global Internet of Things Thematic Index, an index designed to provide exposure to exchange-listed companies in developed markets that facilitate the Internet of Things industry. SNSR allows you to gain exposure to companies such as STMicroelectronics, Advantech Co, Garmin, and Skyworks Solutions.
As of February 3rd, 2021, SNSR is $33.72 with an expense ratio of 0.68%. Since its inception on September 12th, 2016, SNSR has provided a total return of approximately 129% and an average annual total return of approximately 21%.
2. First Trust IndXX NextG ETF (NXTG)
NXTG is an ETF that seeks to track the performance of the Indxx 5G & NextG Thematic Index, an index designed to track the performance of companies that have devoted, or have committed to devoting, material resources to the research, development, and application of 5G and next-generation…
