In the quickly evolving world of technology, it’s hard to know what the next big thing will be and how to get ahead of the crowd. Forbes writer Eric Savitz recently highlighted research group Garner’s attempt at this guessing game with a list of their Top 10 Strategic Technology Trends For 2013, featuring ideas that have started to rumble already in 2012. To gain access to these fantastic growth opportunities while still staying diversified and keeping costs to a minimum, investors can turn to a number of ETFs [see High Tech ETFdb Portfolio].
Below, we highlight a handful of ETFs that have strategies which fall in line with Forbes’s Top Strategic Trends over the coming year:
1. NASDAQ CEA Smartphone Index Fund (FONE)
Today the flip phone just no longer cuts it. In 2013, mobile devices will pass PCs to be the most common web access tools, and by 2015 over 80% of all handsets in developed markets will be smartphones. As the explosion of mobile web browsing continues to engulf us all, First Trust’s ETF can offer unparalleled exposure to this niche market. By tracking the performance of companies engaged in the smartphone segment of telecom, FONE offers exposure to telecom giants like Samsung (SSNLF), Apple (AAPL) and HTC [Download 101 ETF Lessons Every Financial Advisor Should Learn].
2. ISE Cloud Computing Index Fund (SKYY)
Clouds have become the center of our digital lives, storing photos, documents and other things too important to save in just one place. The automatic synchronization between devices has required data storage centers to increase and become more efficient, with SKYY offering front row seats to the action. Following a modified equal dollar weighted index, this First Trust fund tracks the performance of companies at the forefront of the cloud computing industry, such as Amazon.com (AMZN), SAP (SAP) and Google (GOOG) [Try our Free ETF Stock Exposure Tool].
3. DJ Internet Index Fund (FDN)
The world would not be where it is today without the internet as the ability for instant communication has become a staple of our everyday lives. FDN includes only American companies that generate 50% of their sales from the internet, which has brought together online giants like eBay (EBAY), Facebook (FB), LinkedIn (LNKD), Google and Amazon under one ticker [see TDIV: Where Technology Meets Dividends].
4. S&P North American Technology-Multimedia Networking Index Fund (IGN)
While cloud computing is fine for photos and documents, when it comes to running businesses and countries, physical servers in secure locations are the best way to maintain a safe haven for data. This ETF from iShares offers investors exposure to U.S-traded multimedia networking stocks, with heavy exposure to a number of well-known tech giants including: Cisco Systems (CSCO), Motorola Solutions (MSI) and Qualcomm (QCOM).
5. ETRACS Next Generation Internet ETN (EIPO)
The internet has proven to be an absolutely critical element to the advancement of technology as ideas, money and connections are shared now faster then ever before. Businesses can even exist almost entirely online, as reaching millions of interested investors and consumers has never been so accessible. EIPO tracks the performance of U.S. internet-related companies that have been publicly available for less than three years [see 3 ETF Plays For Technology Growth Stocks Flying Under The Radar].
Disclosure: No positions at time of writing.
- Technology ETFs: Social Media, SSDs, Smartphones, and More
- Tech ETFs In Focus: Highlighting Some Hyper-Targeted Options
- UBS Debuts Solid State Drive ETNs
- Updated: Which ETFs Will Own Facebook (And When)
- Top 10 Noteworthy ETF Trends Of 2011