Best ETFs for 2019: Pacer Data & Infrastructure Real Estate ETF Is a Leader

This article is a part of InvestorPlace’s Best ETFs for 2019 contest. Robert Waldo’s pick for the contest is the Pacer Benchmark Data & Infrastructure Real Estate ETF (NYSEARCA:SRVR).

Best ETFs for 2019: Pacer Data & Infrastructure Real Estate ETF Is WinningAs of this writing, the Pacer Benchmark Data & Infrastructure Real Estate ETF (NYSEARCA:SRVR) is in the No.1 spot for our best ETFs for 2019 contest, up 20% year-to-date.

All of the exchange-traded funds are in the green and it’s a close race, with a tie for second place as I write this. But regardless of the success of other ETFs riding on SRVR’s tail, I still believe this 5G ETF will come out on top at the end of the year.

The SRVR ETF is one of the best ETFs to buy this year because it’s a well-rounded play on an upcoming trend that will affect how the world operates for years to come.

I’m talking about 5G — “the next generation of cellular connectivity” that will make the most exciting and futuristic tech ideas possible. To get an idea of how fast 5G is compared to 4G LTE, consider that 4G LTE’s top speed is 1GB per second, while 5G will have a top speed of 20 GB per second — a 2,000% increase!

While these top speeds won’t be obtained consistently, they still signify a significant leap in speed that will help make our hyper-connected, high-tech world operate much quicker and more efficiently.

This 5G ETF Is Not Just About 5G

But as hype-worthy of a trend as 5G may be, that’s not all that SRVR has going for it. In fact, part of my decision to pick this fund for our best ETFs contest was that it’s a real estate investment trust (REIT) ETF. This means its holdings own data centers and fiber that are vital to the 5G rollout, but are also necessary for all of our current, general tech-related luxuries like the cloud.

Without SRVR’s holdings, our day-to-day, tech-obsessed lifestyle would be much different.

And that’s the key reason why it’s one of the best ETFs to buy: Its holdings are necessary with or without the 5G catalyst, which makes it a safe, long-term play with significant growth potential.

The companies that make up SRVR’s top holdings, like American Tower Corp (NYSE:AMT) and Equinix Inc (NASDAQ:EQIX), provide the infrastructure that enables our current connectivity, but each of these will gain a significant boost as 5G is adopted in the years ahead and the need for more fiber, cell towers, etc., becomes a reality.

Its design as a REIT ETF also means that it comes with a hefty 3.7% dividend yield, which will help provide steady income to investors as 5G expands over the years. And all this for an expense ratio of 0.6%.

All of these perks add up to SRVR’s current success as the best performing ETF in our contest right now. But no matter the end result, you can bet that this will be a strong 5G ETF to buy for many years.

Robert Waldo has been a web editor for InvestorPlace since 2016. As of this writing, he did not hold a position in any of the aforementioned securities.

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