5G is coming. Here’s one way to invest in the telecom boom
New York (CNN Business)5G wireless is a reality, and it’s gearing up for broad adoption. So it should come as no surprise that there is now a fund solely dedicated to the red hot technology.
The Defiance Next Gen Connectivity ETF (FIVG) — ticker symbol FIVG — launched earlier this year. The fund is a passive index fund that is based on the BlueStar 5G Communications Index. That means that there aren’t managers actively picking stocks, per se.
But BlueStar will use several quantitative and qualitative rules to select which stocks make the index, says Paul Dellaquila, president of Defiance ETFs. So an element of stock picking will exist.
Dellaquila said that BlueStar is looking for telecom equipment companies, service providers and chip manufacturers that all have significant amounts of their businesses tied to 5G.
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