One of the hottest techs areas to invest in is 5G wireless systems and ETF SERIES SOLUTIONS DEFIANCE NEXT GEN CONNECTIVITY ETF ETF (NYSEArca: FIVG) is one of the top ETFs for this industry. While the world has been preoccupied with Covid-19, mobile phone carriers and networks have been setting up 5G networks and releasing 5G phones. AlphaBetaStock.com readers will remember that we added Defiance 5G ETF to our watch list in February. Although the ETF took a dip (as did most the market because of the Coronavirus), it has come back strong and returned 15% from July 2019 to July 2020.
What is Defiance Next Gen Connectivity ETF?
Defiance Next Gen Connectivity ETF is the first ETF to emphasize securities whose products and services are primarily linked to the development of networking technologies and 5G communications. An ETF stands for “exchange-traded fund,” which is a bucket of stocks. They are a great way to diversify your investment by investing in many different stocks and reducing your risk.
FIVG does this by tracking the 5G BlueStar Communications Index, and FIVG tries to invest in the Index. FIVG “exceeded $ 200M in less than 12 months since its launch, making it one of the most successful ETF thematic addresses in recent years,” according to statements from New York’s ETFs Defiance.
What are stock holdings for Defiance Next Gen Connectivity ETF?
One of the critical things to check when investing in ETFs and mutual funds is to check what the actual stock holding are, so that your portfolio is not overlapping. ETFs do not generally change their allocations frequently, but mutual funds usually change often. Here is the current allocation of FIVG ETF as of 7/8/2020:
|Name||% Portfolio||Sector||Dividend Yield|
|Nokia Oyj Sponsored ADR||0.0524||Information Technology||0|
|Telefonaktiebolaget LM Ericsson Sponsored ADR Class B||0.0471||Information Technology||0.005|
|Analog Devices, Inc.||0.0469||Information Technology||0.0202|
|QUALCOMM Incorporated||0.0461||Information Technology||0.0282|
|Xilinx, Inc.||0.0386||Information Technology||0.0153|
|NXP Semiconductors NV||0.0386||Information Technology||0.013|
|Akamai Technologies, Inc.||0.0354||Information Technology||0|
|Marvell Technology Group Ltd.||0.0349||Information Technology||0.0068|
|American Tower Corporation||0.0341||Real Estate||0.0165|
|Keysight Technologies Inc||0.0303||Information Technology|
|Skyworks Solutions, Inc.||0.0284||Information Technology||0.0133|
|Verizon Communications Inc.||0.0266||Communication Services||0.0447|
|Charter Communications, Inc. Class A||0.0247||Communication Services|
|Crown Castle International Corp||0.0234||Real Estate||0.028|
|AT&T Inc.||0.0228||Communication Services||0.0686|
|Digital Realty Trust, Inc.||0.0218||Real Estate||0.0304|
|T-Mobile US, Inc.||0.0201||Communication Services||0|
|Equinix, Inc.||0.0188||Real Estate||0.0148|
|Ciena Corporation||0.0178||Information Technology||0|
|F5 Networks, Inc.||0.0176||Information Technology||0|
|Vodafone Group Plc Sponsored ADR||0.0151||Communication Services||0.061|
|Qorvo, Inc.||0.0143||Information Technology|
|China Mobile Limited Sponsored ADR||0.0136||Communication Services||0.0554|
|Amazon.com, Inc.||0.0132||Consumer Discretionary||0|
|Arista Networks, Inc.||0.0115||Information Technology|
|SBA Communications Corp. Class A||0.0114||Real Estate||0.0061|
|Apple Inc.||0.0113||Information Technology||0.0088|
|Intel Corporation||0.0106||Information Technology||0.0226|
|Cisco Systems, Inc.||0.0103||Information Technology||0.0316|
|VMware, Inc. Class A||0.0099||Information Technology||0|
|Juniper Networks, Inc.||0.0095||Information Technology||0.0356|
|Broadcom Inc.||0.0088||Information Technology||0.0415|
|Lattice Semiconductor Corporation||0.0085||Information Technology||0|
|Orange SA Sponsored ADR||0.0085||Communication Services||0.0284|
|II-VI Incorporated||0.0082||Information Technology||0|
|Inseego Corp.||0.0082||Information Technology|
|Ribbon Communications Inc.||0.0077||Information Technology|
|National Instruments Corporation||0.0076||Information Technology||0.0276|
|Maxar Technologies, Inc.||0.0071|
|CEVA, Inc.||0.0068||Information Technology||0|
|MACOM Technology Solutions Holdings, Inc.||0.0067||Information Technology||0|
|CyrusOne, Inc.||0.0065||Real Estate||0.0262|
|QTS Realty Trust, Inc. Class A||0.0065||Real Estate||0.0283|
|GDS Holdings Ltd. Sponsored ADR Class A||0.0063||Information Technology|
|ADTRAN, Inc.||0.0062||Information Technology||0.0327|
|Ceragon Networks Ltd||0.006|
|Corning Inc||0.0059||Information Technology||0.0332|
|InterDigital, Inc.||0.0058||Information Technology||0.0245|
|IPG Photonics Corporation||0.0058||Information Technology||0|
|Hewlett Packard Enterprise Co.||0.0057||Information Technology||0.0529|
|NetScout Systems, Inc.||0.0057||Information Technology||0|
|Casa Systems, Inc.||0.0057||Information Technology|
|CoreSite Realty Corporation||0.0057||Real Estate||0.0398|
|Viavi Solutions Inc||0.0055||Information Technology||0|
|NeoPhotonics Corporation||0.0055||Information Technology||0|
|Lumentum Holdings, Inc.||0.0052||Information Technology|
|A10 Networks, Inc.||0.0052||Information Technology|
|Acacia Communications, Inc.||0.005||Information Technology|
|SK Telecom Co., Ltd. Sponsored ADR||0.0048||Communication Services||0.0667|
|Ubiquiti Inc.||0.0048||Information Technology||0.0068|
|Sierra Wireless Inc.||0.0048|
|KT Corporation Sponsored ADR||0.0045||Communication Services||0.0406|
|CommScope Holding Co., Inc.||0.0045||Information Technology|
|CenturyLink, Inc.||0.0043||Communication Services||0.101|
|Infinera Corporation||0.0042||Information Technology||0|
|CSG Systems International, Inc.||0.0042||Information Technology||0.0237|
|Comtech Telecommunications Corp.||0.0025||Information Technology||0.0258|
|Extreme Networks, Inc.||0.0024||Information Technology||0|
|First American Funds Inc X Government Obligations Fund||0.0012|
What does 5G Technology Mean to Investors
5G technology will use a higher frequency band compared to the current 4G technology standard, resulting in faster transmission of data. Certainly, the vast amounts of data transmitted at a faster rate are of benefit to wireless companies and their users, but 5G could be a significant turmoil in various industries.
FIVG provides investors with companies that are engaged in research and development or commercialization of systems and materials used in 5G communications with liquid, transparent, and low-cost access. The BlueStarGlobal Index 5G Communications tracks approximately 60 stocks listed across all market capitals, and large caps are given a special weighting (71%.) It uses a tiered weighting system that shares a position. The Institute has been in operation since March 2019 and has a cost ratio of 0.30%.
The 5G BlueStar Communications Index is a rule-based index that tracks the performance of a US-listed stock group, global companies involved in the development, or otherwise in the operation of 5G networks. These securities include the following: core carrier-grade networking equipment, including cellular antenna and routers, mobile network operators, satellite-based communications, enhanced mobile broadband chips, new radio technology, test equipment, wireless network optimization, cloud computing equipment, networking defined by software or network verification functions, fiber optic cables, or real estate investment trusts in the data center and / or data centers.
5G technology investing is in the exploration phases, and there is very little chance of revenue/sales right now. However, it provides an opportunity to see that early adopters will benefit, mainly if the technology is being fully utilized.
Is FIVG ETF A Buy?
Similar to any new emerging technology, the 5G industry has a lot of risks. That being said, the FIVG ETF, as an excellent way to get exposure to 5G.
Currently, FIVG ETF is in a strong bull trend. A majority of the technical indicators are signally positive. It appears to be hitting resistance around $27. If the new support holds around $26.80, FIVG will break through the resistance soon. Usually, AlphaBetaStock.com recommends that investors wait for a dip to enter a trade, but it may not be necessary because this is an ETF.
FIVG ETF 1 Day Moving Averages – BUY
|Exponential Moving Average (5)||27.45||Buy|
|Simple Moving Average (5)||27.46||Buy|
|Exponential Moving Average (10)||27.3||Buy|
|Simple Moving Average (10)||27.14||Buy|
|Exponential Moving Average (20)||27.07||Buy|
|Simple Moving Average (20)||27.08||Buy|
|Exponential Moving Average (30)||26.79||Buy|
|Simple Moving Average (30)||27.05||Buy|
|Exponential Moving Average (50)||26.26||Buy|
|Simple Moving Average (50)||26.18||Buy|
|Exponential Moving Average (100)||25.57||Buy|
|Simple Moving Average (100)||24.72||Buy|
|Exponential Moving Average (200)||25.14||Buy|
|Simple Moving Average (200)||25.06||Buy|
|Ichimoku Cloud Base Line (9, 26, 52, 26)||26.91||Neutral|
|Volume Weighted Moving Average (20)||27.02||Buy|
|Hull Moving Average (9)||27.78||Sell|
Evidence-based financial writer with 9 years of experience specializing in earnings, economic data coverage, and bond markets. I combine fundamentals, technicals, and macro to identify low-risk, asymmetric opportunities.