I have a lot of predictions for 2019.

Some are highly likely – like the Fed will raise interest rates. Others are more out there – along the lines of the U.S. legalizing marijuana.

One of my highly likely predictions is that we’ll begin a new chapter in wireless technology.

I’m talking about 5G. As I write this, nearly all of the major wireless carriers are set to begin rolling out the latest generation of technology. There will be many beneficiaries of this shift. Everything from autonomous vehicles to the Internet of Things (IoT).

But one area that has been overlooked is the augmented reality (AR) and virtual reality (VR) industry. Faster internet speeds combined with less latency (lag time) will result in a much smoother AR/VR experience.

I have used VR headsets a few times, and I have to say I was quite impressed. That said, I am certainly not a hardcore gamer nor did I push the headset to its limits. Once 5G is rolled out, the future of the AR/VR industry will look very different.

Endless Possibilities to Profit

Contrary to popular belief, AR/VR is not only about gaming. The technology can be used in everything from retail to industrial training to professional and amateur sports.

That means there will be a whole lot of winners in this space. Today I want to talk about three that stand out as having some of the greatest long-term potential.

The first is the Defiance Future Tech ETF (AUGR), which was launched earlier this year. This ETF tracks the BlueStar Augmented and Virtual Reality Index, and it is comprised of companies that have ties to the future of the AR/VR industry. As they profit from the growing trend, so will AUGR.

Lenovo Group

(LNVGY) is the largest holding in AUGR, and it has held up extremely well in the recent market pullback. This Hong Kong-based company has a plethora of hardware products and is quickly becoming a major player in VR headsets and accessories.

Based on the recent action, I believe this stock could be set up for a rally once the pullback is complete.

Finally, we have Advanced Micro Devices (AMD). This is one of the leading chipmakers for AR/VR devices. Chipmakers are very diverse, as their technology is relevant in many of the fast-growing trends in the market. The AR/VR industry is just another that will count on companies like AMD. As a result, it has a lot of potential to capitalize in the years ahead.