Markets

Best ETFs to Invest in 5G Theme

The fifth generation wireless technology or 5G is ready to take off and will be a game changer when it is fully implemented. There is a lot of excitement over the technology, given its transformative potential.  

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.

With much faster speeds, 5G could change the way we live, work, travel and communicate. The technology will provide a big boost to the Internet of Things, self-driving cars, and virtual/augmented reality technologies

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.

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 ) .

The First Trust Indxx NextG ETF (NXTG) changed its focus last month to track an index of companies involved in 5G and next-generation cellular technologies. AMD (AMD), Equinix (EQIX) and Cisco (CSCO) are among its top holdings.

To learn more about these ETFs, please watch the short video above.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


Click to get this free report

Cisco Systems, Inc. (CSCO): Free Stock Analysis Report

Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report

CommScope Holding Company, Inc. (COMM): Free Stock Analysis Report

Equinix, Inc. (EQIX): Free Stock Analysis Report

Sprint Corporation (S): Free Stock Analysis Report

Verizon Communications Inc. (VZ): Free Stock Analysis Report

AT&T Inc. (T): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report

Xilinx, Inc. (XLNX): Free Stock Analysis Report

Defiance Next Gen Connectivity ETF (FIVG): ETF Research Reports

First Trust NASDAQ Smartphone Index Fund (NXTG): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ETFs

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More