A Pure Play ETF To Connect With 5G

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5G has been touted as a pending technological revolution. Lots of funds have some exposure, but this might be the best 5G ETF.

The rollout of 5G technology promises transformative technological change that will bring high-speed internet access nationwide and massively expand device connectivity and the “Internet-of-Things” (IoT). But, before we discuss buying individual stocks or a 5G ETF, let’s take a moment to look at nationwide internet coverage.

According to the FCC, only 6% of the U.S. lacks access to fixed broadband in their area (defined as 4 MBPS download and 1 MBPS upload), although that number jumps to 14% of rural areas, and approximately 100 million Americans that technically have access to broadband are not subscribers.

The hurdles to broadband uptake likely lie in the cost of broadband relative to its perceived benefit (especially among older households) or problems with “last mile” connectivity, bringing the internet from your provider to your front door.

Industry data indicates that 80%+ of households currently have access to gigabit internet speeds, which is 25x what the FCC classifies as broadband. So, parsing the data, somewhere in the neighborhood of 10-30% of the U.S. either can’t get or doesn’t have what most people would consider high-speed internet.

How do you solve that problem? That’s where 5G comes in. Beaming high-speed internet to the nation’s collective front door has the potential to immediately address “last mile” connectivity problems and bridge the gap between the FCC’s definition of broadband and real high-speed internet. And none of those statistics even speak to educational or business access to high-speed internet, which is likely where the big profit drivers will be.

Right now, there are a large number of companies that have a toe in the water of 5G, like chipmakers and telecom giants, but ETF investors really only have one option that represents a pure-play 5G ETF.

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