Defiance Next Gen Connectivity ETF Soars. Is FIVG A Buy?

Earlier this year we recommended investors that wanted exposure to 5G seriously look at  ETF SERIES SOLUTIONS DEFIANCE NEXT GEN CONNECTIVITY ETF (NYSEARCA: FIVG: FIVG). Since our recommendation, FIVG is up then it is up over 8% and 15.9% over the S&P 500 for the year (see chart below).  One of the hottest techs areas to invest in is 5G wireless systems and 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. 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.


Investors are asking if Definance Next Gen ETF is a good buy. The short answer is YES, we believe it is a good buy for investors looking for exposure to 5G if it makes sense for their risk and portfolio. 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 $34. If the new support holds around $32, FIVG will break through the resistance soon. Usually, recommends that investors wait for a dip to enter a trade, but it may not be necessary because this is an ETF.

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 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.

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%  PortfolioSectorDividend Yield
Nokia Oyj Sponsored ADR0.0524Information Technology0
Telefonaktiebolaget LM Ericsson Sponsored ADR Class B0.0471Information Technology0.005
Analog Devices, Inc.0.0469Information Technology0.0202
QUALCOMM Incorporated0.0461Information Technology0.0282
Xilinx, Inc.0.0386Information Technology0.0153
NXP Semiconductors NV0.0386Information Technology0.013
Akamai Technologies, Inc.0.0354Information Technology0
Marvell Technology Group Ltd.0.0349Information Technology0.0068
American Tower Corporation0.0341Real Estate0.0165
Keysight Technologies Inc0.0303Information Technology
Skyworks Solutions, Inc.0.0284Information Technology0.0133
Verizon Communications Inc.0.0266Communication Services0.0447
Charter Communications, Inc. Class A0.0247Communication Services
Crown Castle International Corp0.0234Real Estate0.028
AT&T Inc.0.0228Communication Services0.0686
Digital Realty Trust, Inc.0.0218Real Estate0.0304
T-Mobile US, Inc.0.0201Communication Services0
Equinix, Inc.0.0188Real Estate0.0148
Ciena Corporation0.0178Information Technology0
F5 Networks, Inc.0.0176Information Technology0
Amdocs Limited0.0158  
Vodafone Group Plc Sponsored ADR0.0151Communication Services0.061
Qorvo, Inc.0.0143Information Technology
China Mobile Limited Sponsored ADR0.0136Communication Services0.0554, Inc.0.0132Consumer Discretionary0
Arista Networks, Inc.0.0115Information Technology
SBA Communications Corp. Class A0.0114Real Estate0.0061
Apple Inc.0.0113Information Technology0.0088
Intel Corporation0.0106Information Technology0.0226
Cisco Systems, Inc.0.0103Information Technology0.0316
VMware, Inc. Class A0.0099Information Technology0
Juniper Networks, Inc.0.0095Information Technology0.0356
Broadcom Inc.0.0088Information Technology0.0415
Lattice Semiconductor Corporation0.0085Information Technology0
Orange SA Sponsored ADR0.0085Communication Services0.0284
II-VI Incorporated0.0082Information Technology0
Inseego Corp.0.0082Information Technology
Ribbon Communications Inc.0.0077Information Technology
National Instruments Corporation0.0076Information Technology0.0276
Maxar Technologies, Inc.0.0071  
CEVA, Inc.0.0068Information Technology0
MACOM Technology Solutions Holdings, Inc.0.0067Information Technology0
CyrusOne, Inc.0.0065Real Estate0.0262
QTS Realty Trust, Inc. Class A0.0065Real Estate0.0283
GDS Holdings Ltd. Sponsored ADR Class A0.0063Information Technology
ADTRAN, Inc.0.0062Information Technology0.0327
Ceragon Networks Ltd0.006  
Corning Inc0.0059Information Technology0.0332
InterDigital, Inc.0.0058Information Technology0.0245
IPG Photonics Corporation0.0058Information Technology0
Hewlett Packard Enterprise Co.0.0057Information Technology0.0529
NetScout Systems, Inc.0.0057Information Technology0
Casa Systems, Inc.0.0057Information Technology
CoreSite Realty Corporation0.0057Real Estate0.0398
Viavi Solutions Inc0.0055Information Technology0
NeoPhotonics Corporation0.0055Information Technology0
Lumentum Holdings, Inc.0.0052Information Technology
A10 Networks, Inc.0.0052Information Technology
Acacia Communications, Inc.0.005Information Technology
SK Telecom Co., Ltd. Sponsored ADR0.0048Communication Services0.0667
Ubiquiti Inc.0.0048Information Technology0.0068
Radware Ltd.0.0048  
Sierra Wireless Inc.0.0048  
KT Corporation Sponsored ADR0.0045Communication Services0.0406
CommScope Holding Co., Inc.0.0045Information Technology
CenturyLink, Inc.0.0043Communication Services0.101
Infinera Corporation0.0042Information Technology0
CSG Systems International, Inc.0.0042Information Technology0.0237
Allot Ltd.0.0028  
Comtech Telecommunications Corp.0.0025Information Technology0.0258
Extreme Networks, Inc.0.0024Information Technology0
U.S. Dollar0.0012  
First American Funds Inc X Government Obligations Fund0.0012  

FIVG ETF 1 Day Moving Averages – BUY

Exponential Moving Average (5)33Sell
Simple Moving Average (5)33.19Sell
Exponential Moving Average (10)32.78Buy
Simple Moving Average (10)32.84Buy
Exponential Moving Average (20)32.2Buy
Simple Moving Average (20)32.2Buy
Exponential Moving Average (30)31.71Buy
Simple Moving Average (30)31.4Buy
Exponential Moving Average (50)31.01Buy
Simple Moving Average (50)30.66Buy
Exponential Moving Average (100)29.84Buy
Simple Moving Average (100)29.81Buy
Exponential Moving Average (200)28.37Buy
Simple Moving Average (200)27.33Buy
Ichimoku Cloud Base Line (9, 26, 52, 26)31.39Neutral
Volume Weighted Moving Average (20)32.36Buy
Hull Moving Average (9)33.31Sell
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