5 5G ETFs With A Little Bit of Everything

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5G ETFs - 5 5G ETFs With A Little Bit of Everything

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By now, you’re well aware of 5G technology and 5G ETFs.

With unimaginable speeds, the technology will supposedly disrupt everything around us. In fact, according to Inc. contributor Jennifer Alsever, “5G opens the floodgates to download speeds of one gigabit per second, or more than 10 times what we’re used to. Movies will download in seconds.”

Better, 5G could help usher in trillions of dollars of revenue in the next decade. It could advance the Internet of Things, connecting millions of us to equipment and each other, change gaming, virtual and augmented reality, automated vehicles, and even healthcare. There’s even talk of 6G at the moment, which could lead to holograms, and internet-connected brains.

However, before we get ahead of ourselves, let’s just focus on 5G at the moment.

One of the best ways to diversify on new broadband technology at less cost is through one of these 5G ETFs. Here are some to consider:

  • First Trust Indxx NextG ETF (NASDAQ:NXTG)
  • Defiance Next Gen Connectivity ETF (NYSE:FIVG)
  • Global X Internet of Things ETF (NASDAQ:SNSR)
  • VanEck Vectors Semiconductor ETF (NASDAQ:SMH)
  • Pacer Benchmark Data & Infrastructure Real Estate ETF (NYSE:SRVR)

5G ETFs: First Trust Indxx NextG ETF (NXTG)

stocks to buy

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Expense Ratio: 0.7%, or $70 per $10,000 invested annually

With an expense ratio of 0.7%, the First Trust Indxx NextG ETF offers exposure to 5G-related stocks at just $70 a share. Some of its top holdings include Intel Corp. (NASDAQ:INTC), F5 Networks (NASDAQ:FFIV), Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD), and Qualcomm (NASDAQ:QCOM).

If you were to buy 100 shares of NXTG, it’d cost you about $7,000 for exposure to those top names. If you were to buy 100 shares of every holding in this ETF, it’d cost you hundreds of thousands of dollars with far less diversification. After running to a high of $75.56, NXTG recently pulled back slightly to about $71, where it is now oversold on RSI, MACD, and Williams’ %R. From here, I’d like to see a near-term test of its prior high.

Defiance Next Gen Connectivity ETF (FIVG)

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Expense Ratio: 0.3%

Another one of the hottest 5G ETFs to consider is FIVG. After exploding form about $28 to $37, it pulled back to support around $33, and is just beginning to pivot higher. From here, I’d like to see a near-term recovery to its prior high. With the 5G boom only gaining traction, this could be a $50 stock before long. This ETF allows investors to diversify with NXP Semiconductors (NASDAQ:NXPI), Analog Devices (NASDAQ:ADI), Ericsson (NASDAQ:ERIC), AT&T (NYSE:T) and Qualcomm.

One of the most oversold of the bunch is Qualcomm, which is one of the top 5G leaders. After falling to $129, I believe it could refill its bearish gap around $160, near-term.

Also, according to Barron’s contributor Max A. Cherney:

“Cheap price aside, Kumar says the company’s business remains primed to take advantage of consumers upgrading or buying 5G smartphones. Kumar said he expects 5G handset sales to double in 2021, and grow nearly 50% in 2022.”

Global X Internet of Things ETF (SNSR)

5g ETFs

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Expense Ratio: 0.68%

The SNSR ETF is another of today’s high-flying 5G ETFs. Since bottoming out around $15, it ran to a high of $35.64 before pulling back to $33. This one has also become an oversold bargain at bottom of trend with oversold extensions on RSI, MACD, and Williams’ %R. I’d like to see the ETF retest its prior high in the near future.

While its focus is the Internet of Things (IoT), 5G will support a good deal of IoT gadgets.

In fact, according to Verizon (NYSE:VZ):

“5G-enabled IoT is expected not only to enable technological growth; it is also projected to help support 22 million jobs around the world. This job growth is expected to come from the digitization of transportation, agriculture, manufacturing and other physical industries. Consider also construction sites, mines, oil derricks and freighter fleets: these industries would benefit greatly from ultra-fast data transmission to the time-sensitive nature of their output.”

VanEck Vectors Semiconductor ETF (SMH)

5G network wireless systems and internet of things with modern city skyline. Smart city and communication network concept .

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Expense Ratio: 0.37%

The SMH ETF is capitalizing on two key catalysts at the moment.

First, many semiconductor companies have sizable 5G exposure, like Qualcomm. Second, there’s a significant shortage of semiconductors at the moment. That’s due to big demand for electronics at the moment, and the increased use of the Internet.

Even the electric vehicle industry is finding itself in short supply. It’s gotten so bad that President Joe Biden recently signed an executive order in an attempt to reverse the shortage issue.

I’m finding big opportunity in SMH, too. The ETF has run from about $119 to $231 in the past year. From here, I’d like to see a retest of its $258 high.

Pacer Benchmark Data & Infrastructure Real Estate ETF (SRVR)

The phrase "5G" in bubbles above a cityscape.

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Expense Ratio: 0.6%

Last but not least, SRVR is another way to capitalize on the 5G story.

When it comes to 5G, you need infrastructure. Some of its top holdings support 5G, including Crown Castle (NYSE:CCI), American Tower Corp. (NYSE:AMT), and Digital Realty Trust Inc. (NYSE:DLR).

5G could be a big catalyst for AMT for example. According to former AMT CEO Jim Taiclet, as quoted by CNBC, “There’s going to be more equipment out there transmitting and … it should be something that lengthens and strengthens our growth rate, not in the U.S. only but around the world, eventually.”

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. 

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.


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