The 5G concept ETF of technology stocks is still in the exploration stage
After seeing the strong upward trend of the four internet treasures FANG years ago, investors have a lot to eat and understand, and they are scrambling to find ...
After seeing the strong upward trend of the four internet treasures FANG years ago, investors have a lot to eat and understand, and they are scrambling to find the next wave of "disruptive innovation" technological breakthroughs. In addition to the genetic engineering introduced earlier by the author, another concept that "benefits" from the trade dispute between China and the United States and is widely known is the fifth generation mobile phone (5G) technology.
According to the online data definition, 5G will use a higher bandwidth than the current 4G, and the spread of information will be greatly accelerated.
I ask myself that I do n’t know anything about cutting-edge technology. Fortunately, there is an American-like market in the world . As long as the concept can be said, nine out of ten people do the work, providing research and products, and one-stop service.
One example is Defiance ETFs, an issuer of emerging exchange-traded funds (ETFs). The company specializes in launching related ETFs based on specific disruptive innovation concepts.
Defiance's chief executive Matthew Bielski said that investors' pursuit of an outperforming market will never die; however, fewer and fewer investors are expected to bet on a single stock.
What stock picking does to fully cover the ecological chain Defiance is to construct a combination that accurately reflects a certain concept, incarnate into an ETF, and respond to market demand. At present, the company has launched three ETFs, from which it can be seen that the scope of its concept is indeed quite elaborate.
The three will be released in July 2018, with the theme of augmented, virtual reality (AR & VR) Future Technology ETF (US stock code: AUGR); launched in September last year, with the theme of quantum computer, machine learning (quantum computing & machine learning) quantum ETF ( US stock code: QTUM); and the new generation connectivity ETF (US stock code: FIVG), which was freshly released in March this year, with the theme of 5G.
According to Paul Dellaquila, Director of Global ETFs at Defiance, many people only view 5G as a new type of telecommunications communication solution and underestimate its potential.
In fact, 5G is a technology that can be applied in all directions. Some people even compare it to electricity and printing. Because the flow rate of information reaches this level, many new technologies can actually be integrated into life, from unmanned vehicles, AR and VR, to automated production, smart grids, and healthcare.
However, 5G technology and its applications are still at a very early stage of exploration, and the time and potential rewards for realization are unknown.
Therefore, in the construction of ETFs, Defiance attaches great importance to comprehensive coverage of the entire ecological chain, rather than simply focusing on current related stocks, such as network providers AT & T (US stock code: T), Verizon (US stock code: VZ), etc.
According to the combined structure announced before FIVG's listing, radio access network equipment (radio access network equipment) related shares accounted for 43.9%; core cloud (NFV and equipment) accounted for 17.03%; mobile network operators accounted for 12.98%, and the rest was 5G Chips, satellites, transceiver towers, REIT, network testing, and fiber-related companies account for about 3% to 7% of each sub-sector.
As of Wednesday (April 24), FIVG held a total of 58 shares, most of which were US stocks (accounting for 78.47%), and the rest were mostly European (including Finland, Sweden, Luxembourg, England, France) and Israeli companies; Hong Kong , South Korean and Canadian stocks also occupy one seat each.
If you intend to invest in the 5G concept through FIGV, there are two points to note: Since FIVG has just been listed, as of this Tuesday (23rd), the net asset value is only $ 58 million, and the total number of units is 2.2 million shares. The liquidity needs to be further improved. Code should be restricted.
In addition, because there are not many listing days, there is not enough data for common technical analysis, such as the average line, relative strength, etc .; as risk management, you can consider reducing the post-listing high by 15% as a stop loss level. It is the norm for high-tech technology to fall and fall all the time. Don't forget to retreat while riding the wind and waves.