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Say Hello to 5G

5G or the fifth and the newest generation of the mobile network is called disruptive, evolutionary, and transformative, among other superlatives.


So, what is the big deal about 5G?


The new 5G standard will be much faster, more responsive, much lower latency, and has greater capacity than the current 4G network. Some have been described 5G as a "fat pipe" to pass the massive amount of data from a slew of different platforms. It is a technology so coveted and highly anticipated it will be a real breakthrough for new technology devices and applications such as the Internet of Things (IoT), artificial intelligence, cloud computing, machine learning, automate network management, and security.


Since 5G will operate at a much faster communication speed and with greater bandwidth, 5G can power technologies well beyond the current capacities of 4G mobile technology. 5G promises to revolutionize current and new technologies making significant improvements to 3D technology, virtual reality, augmented reality, and others to create services far beyond what current cellular technology allows.


5G will make everything smarter – smart traffic, smart cities, smart building, smart shopping, smart banking, and smart everything. Some believe it is also transformational, creating new industries, new businesses, and a super technology spending cycle.


As part of the Apple event today, Apple's iPhones got a lot faster with its new lineup of four new 5G iPhone 12. Will the new iPhone and 5G spur on a super-cycle of technology spending trend? As with any new technology, it will come with pros and cons (mostly fits and starts). Although there is a lot of buzz around 5G, it is hard to know what 5G can do until it is fully operational, built-out and rolled out to the masses.


The pertinent question is - what are the companies that stand to benefit from 5G technology?


From the ETF front, the ETFs that focus on 5G technology:


First Trust NASDAQ Smartphone Index Fund (NXTG – 62.35), Global X Internet of Things Thematic (SNSR – 28.01), Pacer Benchmark Data & Infrastructure Real Estate SCTR (SRVR – 36.54), Global X NASDAQ China Technology (CHIC – 27.06), Defiance Quantum (QTUM – 35.55), Vanguard Communication Services (VOX – 106.54), communication Services Select Sector SPDR (XLC – 61.98), VanEck Vectors Semiconductor (SMH – 189.37), and (Defiance 5G Next Gen Connectivity (FIVG – 30.13).


From the stock side, the companies that focus on 5G technology:


AAPL (121.10), NOK (4.04), ERIC (10.73), GLW (34.87), VZ (58.85), T (27.75), TMUS (121.57), AMT (242.41), CCI (166.80), NVDA (569.93), QCOM (127.46), ADI (123.59), AVGO (381.49), MRVL (43.78), SWKS (153.20), QRVO (135.17), AVNW (22.31), MTSI (36.32), SWIR (11.70), and VUZI (4.84).


Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

Source: Courtesy of StockCharts.com

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