5G ETFs: Invest in the Next Generation Wireless Technology

Neena Mishra - finance.yahoo.com Posted 4 years ago
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Here is what investors need to know about investing in the next generation of mobile technology.
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  • (1:30) - What Exactly Is 5G Going To Provide?
  • (6:20) - Who Stands To Benefit The Most From 5G?
  • (9:00) - Defiance Next TenConnectivity ETF: FIVGplease change to The Defiance Next Gen Connectivity ETF
  • (15:25) - Defiance Augmented and Virtual Reality ETF: AUGR
  • (19:40) - Episode Roundup: [email protected]

In this episode of ETF Spotlight, I talk with Paul Dellaquila, Global Head of ETFs at Defiance. We discuss the fifth generation wireless technology or 5G, and related ETFs.

The International Telecommunication Union (ITU), a UN body, has a set of requirements for the technology. It should offer download speeds of at least 20 gigabits per second, response times or “latency” of less than 1 millisecond and the ability to connect at least 1 million devices in one square kilometer. So, we may be on the brink of a communications revolution as 5G could change the way we live, work, travel and communicate.

Major telecom companies have just started rolling out 5G service in very limited areas. Verizon VZ enabled the service last month in parts of Chicago and Minneapolis. AT&T T has started 5G service trials in parts of 19 cities. Sprint S plans to launch the service in nine cities by the end of this quarter.

Samsung SSNLF was among the first phone makers to introduce a 5G smartphone. Apple AAPL settled its multiyear legal dispute with Qualcomm QCOM recently, so we could see a 5G iPhone next year.

We discuss the current status of deployment of the technology. The technology will have an enormous impact when it becomes mainstream. We talk about the 5G value chain.

The Defiance Next Gen Connectivity ETF FIVG is the first ETF focused exclusively on companies involved in research, development and usage of 5G technology. Its top holdings include CommScope COMM, Xilinx XLNX and Skyworks SWKS.

US wants to be a leader in the space and China had identified 5G as a “strategic emerging industry” in its Five Year Plan. However, theChinese telecom giant Huawei, which plans to launch a $600 5G phone and the world's first 5G TV later this year, is privately held.

The technology will provide a big boost to the Internet of Things, self-driving cars,

and virtual/augmented reality technologies. We discuss the Defiance Future Tech ETF AUGR, which focuses on companies involved in virtual and augmented reality technologies.

Another ETF—the First Trust NASDAQ Smartphone Index Fund FONE—will change its focus on May 29, and track companies involved 5G and next generation cellular technologies.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email [email protected]

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Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
 
CommScope Holding Company, Inc. (COMM) : Free Stock Analysis Report
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
Sprint Corporation (S) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Samsung Electronics Co. (SSNLF) : Free Stock Analysis Report
 
First Trust NASDAQ Smartphone Index Fund (FONE): ETF Research Reports
 
Xilinx, Inc. (XLNX) : Free Stock Analysis Report
 
Defiance Future Tech ETF (AUGR): ETF Research Reports
 
DEFNC-NX GN GNC (FIVG): ETF Research Reports
 
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