The 5G revolution is upon us. Last week, Apple (AAPL) unveiled its iPhone 12, which is capable of connecting to a much faster 5G cellular network. 5G technology will dramatically increase both internet speed and coverage.
Many investors have recently been focused on 5G stocks but there are also ETFs to invest in that will benefit from the rise of this technology. ETFs can be beneficial to more risk averse investors, as they offer diversification across many stocks.
Investors should take note of the following three “Strong Buy” 5G ETFs: Defiance Next Gen Connectivity (FIVG), Global X internet of Things (SNSR), and Pacer Benchmark Data & Infrastructure Real Estate (SRVR).
Defiance Next Gen Connectivity (FIVG)
FIVG attempts to accurately track the Bluestar 5G Communications Index’s aggregate return performance. This index is comprised of a modified portfolio of US stocks, depository receipts, services, and products weighted for market cap.
FIVG's top five holdings are Qualcomm (QCOM), NXP Semiconductors (NXPI), Telefonaktiebolaget L M Ericsson (ERIC), Analog Devices (ADI), and Xilinx (XLNX).
FIVG has "A" grades in the POWR Rating components of Buy & Hold Grade and Trade Grade. FIVG is ranked in the top 20 of 86 Alternative ETFs.
FIVG’s expense ratio is cheap, at just 0.3%, and it has a dividend yield of about 1%.
Global X Internet of Things (SNSR)
The aim of SNSR is to invest in devices, buildings, vehicles, and other items that rely on internet-of-things technology. Fast forward into the future and the vast majority of the machines we use for life and work will be connected to the internet using 5G technology..
This fund is invested in publicly traded companies that provide everything from networking infrastructure to software, sensors, semiconductors, infrastructure technology, automobile technology and beyond. SNSR's top holdings include Skyworks Solutions (SWKS), Sensata Technologies Holding (ST), Garmin (GRMN), DexCom (DXCM), ADT (ADT), and Silicon Laboratories (SLAB).
SNSR has fantastic POWR Rating components, highlighted by "A" grades in the Buy & Hold Grade and Trade Grade components. SNSR also has a "B" grade in the Industry Rank POWR Rating component. SNSR is ranked 20th of nearly 100 Technology Equities ETFs. If you are a strong believer in the internet’s progression to the point that it becomes ubiquitous, consider investing in SNSR.
Pacer Benchmark Data & Infrastructure Real Estate (SRVR)
SRVR successfully tracks the progress of businesses in the infrastructure and data industries with a focus on those that draw the brunt of their revenue from real estate operations in these sectors.
It’s top five holdings are Crown Castle International (CCI), American Tower (AMT), Equinix (EQIX), SBA Communications (SBAC), and GDS Holdings (GDS).
Around 80% of the index is invested in equity securities listed on US exchanges that generate revenue from operations in the infrastructure/data real estate space. Take a look at the POWR Ratings and you will find SRVR has "A" grades in the Buy & Hold Grade, Peer Grade and Trade Grade components. This popular ETF is ranked 4th out of 27 Real Estate ETFs.
FIVG’s expense ratio is just 0.6%, and has a dividend yield of about 1.7%.
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FIVG shares were trading at $30.02 per share on Wednesday afternoon, up $0.21 (+0.70%). Year-to-date, FIVG has gained 15.61%, versus a 8.31% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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