5 Rising Technology ETFs In 2019

Xaas capabilities are allowing a broad range of users to access cutting edge technologies and services in an easier and cost-effective way. These include AI and Internet of thing (IoT) based solution.

IoT

IoT is the central part of many organizations’ digital transformation which allows for optimizing existing business models and excel at creating and pursuing exciting new models. The combination of AI, machine learning and contextually rich, real time data series delivered by IoT sensors and networks is going to grab eyeballs in 2019.

Also, the new Industrial IoT (IToT) platform is likely to be launched this year, which would help to solve the most difficult tasks faced by manufacturers, that of consolidating all the production systems into one data model.

Worldwide spending on IoT is expected to reach $1.2 trillion in 2022, achieving a CAGR of 13.6% from 2017-2022.

Blockchain

Antitrust and privacy concerns have garnered a lot of attention globally, with big tech giants being questioned for confidential data leak. To combat the same, investors could pay attention to the emerging blockchain technology. This provides a robust, incorruptible and encrypted method of record keeping that can be easily verified.

Possible Roadblocks

Signs of a slowdown in global economic growth are a major concern. Also, with the new Congress just settling in, scrutiny of big tech-giants with regard to privacy and antitrust concerns could pose some issues ahead.

Further, France is working with other counties on a European Union wide digital tax on major tech giants like Apple APPL, Amazon, Facebook (FB - Free Report) and Alphabet (GOOGL - Free Report). This would result in bigger tax bills.

ETFs in Focus

Recently released Fed minutes pointed toward a likely dovish stance to be adopted this year, this bodes well for the high growth sector. Also, Goldman Sachs expects the Internet stocks to outperform the broader markets in 2019.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this ...

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