3 ETFs Focusing on innovative cutting-edge technology.
by Ian Young
Many investors are familiar with the 4G mobile internet network, but soon 5G networks will outmaneuver the status quo as the next generation of mobile internet connectivity, offering faster speeds and more reliable connections on smartphones and other devices than ever before.
Unifying cutting-edge network technology and groundbreaking research, 5G should provide consumers with connections that are dramatically faster than current ones, with average download speeds of around 1GBps expected to soon be the norm.
While they are still in the early stage of implementation, 5G networks will help power a meteoric rise in Internet of Things technology, providing the infrastructure required to carry massive amounts of data, allowing for a smarter and more connected world.
One company that is heavily concentrated in high tech and specifically 5G technology is Defiance ETFs. With 3 ETFs traded in the U.S. markets, Defiance ETFs gather total assets under management of $111.21M. The average expense ratio is 0.33%. Here are 3 of their current offerings:
Defiance Next Gen Connectivity ETF (FIVG)
FIVG offers investors liquid, transparent and low-cost access to companies engaged in the research & development or commercialization of systems and materials used in 5G communications.The underlying BlueStarGlobal 5G Communications Index tracks approximately 60 globally-listed stocks across all market capitalizations. The ETF has been around since March of 2019, and has an expense ratio of 0.30%.
The BlueStar 5G Communications Index is a rules based index that tracks the performance of a group of US-listed stocks, of global companies that are involved in the development of, or are otherwise instrumental in the rollout of 5G networks. These securities are part of the following categories: core carrier grade networking equipment including cellular antennas and routers, mobile network operators, satellite-based communications, enhanced mobile broadband chips, new radio technology, wireless network test and optimization equipment, cloud computing equipment, software defined networking or network functions virtualization, fiber optic cables, or cell tower and/or data center real estate investment trusts.
The Defiance NextGen Video Gaming ETF (VIDG)
The VIDG ETF seeks to capitalize on a wide range of possible outcomes. Its portfolio reflects the full range of potential winners, from eSports and video games specialists, to media companies and hardware producers.
The fund tracks the BlueStar Next Gen Video Gaming Index which is a rules-based index that tracks the performance of a group of stocks of global companies involved in a range of industries, collectively defined by BlueStar Indexes as Interactive Entertainment Index components are reviewed semi-annually for eligibility, and weights are re-set according to a tiered market capitalization weighting strategy.
The Defiance Quantum ETF (QTUM)
QTUM offers investors liquid, transparent and low-cost access to companies developing and applying Quantum Computing and other transformative computing technologies by tracking the BlueStar Quantum Computing and Machine Learning Index.
The BlueStar Quantum Computing and Machine Learning Index is a rules-based index comprised of equity securities of leading global companies engaged in the research & development or commercialization of systems and materials used in quantum computing: advanced traditional computing hardware, high powered computing data connectivity solutions and cooling systems, and companies that specialize in the perception, collection and management of heterogeneous big data used in machine learning.
Index components are assigned an equal weight subject to a liquidity overlay, index components are reviewed semi-annually for eligibility, and the weights are reset accordingly.
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