Catalysts for growth
While consumer enthusiasm is important, full commitment by telecom companies to the required investment for the leap to 5G, will be determined by the regulatory framework, market innovation and their cooperation and shared vision with industry partners.
If telecom operators are able to position themselves as the ‘best enablers’ for industry applications, then both partners will have the confidence to invest in R&D and infrastructure to make the move to 5G effective, sustainable, innovation-welcoming and profitable. For example, automotive manufacturers could see the potential in 5G networks as a platform to open up new revenue streams and business models, including in-car entertainment or flexible rental charges based on the car/route used. Their industry-centered technological advancements would propel further investment by 5G providers.
Governments that support private investment in 5G through intellectual property protection, availability of risk capital, spectrum licensing and the facilitation of R&D would position themselves to embrace the innovation and potential associated with 5G’s ubiquity in the economy.
Consumer demand would grow with the understanding that people should benefit from wireless, untethered, immersive experiences that enable them to watch movies and live sports programs, play games, shop online and work remotely with convenience, freedom and efficiency. Such services could also enhance cooperation and interaction in fields like education, training, construction, city planning and oilfield exploration.
Potential benefits of ETF investing:
Defiance Next Gen Connectivity ETF:
- Invests in a rules-based index comprised of equity securities of leading companies engaged in the research & development or commercialization of systems and materials used in 5G communications.
- Is a diversified basket of stocks that can potentially benefit from the expansion of the 5G market and the success of 5G-investing company stocks. Rather than buy one or two individual equities focused on this sector, investors can invest in a way that provides diversification while maintaining a targeted view for their portfolio.
- Will be exposed to those leading the market, including Verizon, AT&T, Nokia, Ericsson, Qualcomm, Skyworks Solutions, Cisco, Broadcom and Xilinix.
- Is a cost-effective way to access this market at 0.30% gross expense ratio.
- FIVG Top Ten Holdings:
Percentage of Net Assets
COMMSCOPE HOLDING CO INC
SKYWORKS SOLUTIONS INC
NOKIA CORP-SPON ADR
ERICSSON (LM) TEL-SP ADR
UBIQUITI NETWORKS INC
CISCO SYSTEMS INC
About Defiance ETFs, LLC
Defiance provides investors access to low-cost* ETFs tied to transformative trends, and disruptive sectors.
Fund holdings and sectors are subject to change at any time and should not be considered recommendations to buy or sell any security.
The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A hard copy of the prospectus can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. The Fund is not actively managed and would not sell a security due to current or projected under performance unless that security is removed from the Index or is required upon a reconstitution of the Index. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk. The value of stocks of information technology companies are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition. The Fund is considered to be non-diversified, so it may invest more of its assets in the securities of a single issuer or a smaller number of issuers. Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets. Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.
*Commissions may be charged on trades.
The possible applications of 5G technologies are only in the exploration stages, and the possibility of returns is uncertain and may not be realized in the near future.
Diversification does not assure a profit, nor does it protect against a loss in a declining market.
The Defiance ETFs are distributed by Quasar Distributors, LLC.
 The 5G Economy: How 5G Technology will Contribute to the Global Economy, IHS, January 2017, p.14. https://www.qualcomm.com/media/documents/files/ihs-5g-economic-impact-study.pdf
 Remarks by President Trump on United States 5G Deployment, April 19, 2019. https://www.whitehouse.gov/briefings-statements/remarks-president-trump-united-states-5g-deployment/
 5G for Europe Action Plan, 22 August 2018, https://ec.europa.eu/digital-single-market/en/5g-europe-action-plan
 5G: The Latest News & Updates: The latest and greatest that's happening in the world of 5G, Tim Fisher, July 26, 2019. https://www.lifewire.com/5g-news-4428066
 The 5G Economy: How 5G Technology will Contribute to the Global Economy, IHS, January 2017, p.13. https://www.qualcomm.com/media/documents/files/ihs-5g-economic-impact-study.pdf
 “Gartner Says 8.4 Billion Connected "Things" Will Be in Use in 2017, Up 31 Percent From 2016,” Gartner press release, February 7, 2017. https://www.gartner.com/en/newsroom/press-releases/2017-02-07-gartner-says-8-billion-connected-things-will-be-in-use-in-2017-up-31-percent-from-2016
 5G Opening Up New Business Opportunities, Huawei White Paper, December 2016, p.4.
 5G Opening Up New Business Opportunities, Huawei White Paper, December 2016, p8.
 Accenture, Connected Vehicle, April 2016. https://www.accenture.com/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Dualpub_21/Accenture-digital-Connected-Vehicle.pdf
 5G Opening Up New Business Opportunities, Huawei White Paper, December 2016, p5.