As stated by Opensignal’s crowdsourced data, 5G technology is demonstrating to be a big upgrade over existing LTE technology, but how much faster? It all depends on location, but tests within the United States reveal that it can be roughly three times faster than LTE.
Per an Engadget article, Opensignal’s study pointed that “peak download speeds on 5G reach just past 1.8Gbps in the States versus 678Mbps for LTE, or about 2.7 times faster. Which is owing mainly to the use of millimeter wave spectrum whose ultra-high frequencies (about 30GHz and up) allow such a massive bandwidth boost.”
Disruptive technology such as robotics, artificial intelligence (AI) and machine learning is the next wave of innovation that could very well pave the way for the latest growth-momentum plays for investors. In the not-so-distant future, 5G technology may be an important disruptor and one such opportunity to take advantage of this is the 5G ETF (FIVG) from Defiance ETFs with an expense ratio of 0.30%.
Investors who missed out on the serendipitous run of FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks can try to capitalize on disruptive tech options in 2019 like 5G technology. 5G technology will use a much higher frequency band versus the current 4G technology standard, resulting in faster transmission of data.
Being able to transmit massive amounts of data at a quicker rate is definitely of benefit for wireless companies and their users, but 5G could be a major disruptor in various industries.
The Defiance Next Gen Connectivity ETF is the first ETF to concentrate on securities whose products and services are mostly tied to the development of 5G networking and communication technologies. FIVG does this by tracking The BlueStar 5G Communications Index, and FIVG attempts to invest all, or substantially all, of its assets in the component securities that make up the Index.
The possible applications of 5G technologies are merely in the exploration stages, and the possibility of returns is unreliable and may not be realized soon. However, it presents a chance that could see early adopters experience the benefits, mostly if the technology is utilized to its fullest capabilities.
“When we built this product, we wanted to ensure that we were capturing the entire ecosystem that goes into this 5G buildout because it’s not just about Verizon and AT&T giving you 5G access on your phone, but the infrastructure that’s going to be built out with that,” said Paul Dellaquila, Global Head of ETFs at Defiance ETFs.