First Trust NASDAQ CEA Smartphone Index Fund
When Yahoo (YHOO) reported its earnings this week, CEO Marissa Mayer made it clear that mobile was the future. Of course, many other tech leaders — from companies like Microsoft, Facebook, eBay and Zynga — have stressed the same thing.
This year alone the number of mobile devices has exceeded the global population, which is roughly 7 billion.
Of course, there is an ETF for the mobile megatrend, too: the First Trust NASDAQ CEA Smartphone Index Fund (FONE), which is based on a proprietary index that has 60-plus stocks. To be included, a company must be classified as a “smartphone operator” according to the Consumer Electronics Association. Some of the top holdings include Foxconn and Sony (SNE), and the fund also holds other well-known names like Nokia (NOK), BlackBerry (BBRY) and Samsung (SSNLF).
Total return on this ETF was an impressive 36% in the past year, which includes a dividend yield of nearly 1.2% thanks to a focus on blue-chip tech stocks. The fund also is the most expensives of these three, however, at 0.7% in fees.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.