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Bet Big on These ETFs on Verizon-Amazon Deal

Sanghamitra Saha

Amazon.com Inc AMZN recently announced that it is collaborating with Verizon Communications Inc VZ in order to extend its cloud to 5G networks. The deal will help developers run latency-sensitive programs on mobile and connected devices. For users, it will result in “fewer disruptions and shorter lag times when streaming videos, among other applications.”

“The program, called AWS Wavelength, is one of several new ways that Amazon Web Services is pushing its cloud into new territory. At the company’s annual re:Invent conference in Las Vegas, the world’s top cloud provider also announced new infrastructure called Local Zones, debuting in Los Angeles, that will help nearby users run speed-intensive applications like gaming,” per Reuters.

Apart from faster usage of mobile networks, 5G is going to strengthen the mechanism of the growing Internet of Things (IoT) so that a human-to-object interaction can be set up smoothly. Be it manufacturing or the automotive industry or medicine and healthcare, the impact of 5G could be felt across many spheres. The technology is expected to be used in a more broad-based manner by device makers, carriers and cable companies in 202  (read: Tap 5G Boom With These ETFs).

Against this backdrop, investors can bet on the below-mentioned ETFs.

First Trust Cloud Computing ETF SKYY

The underlying ISE Cloud Computing Index is a modified market capitalization weighted index designed to track the performance of companies actively involved in the cloud computing industry. The fund charges 60 bps in fees.

Defiance Next Gen Connectivity ETF (FIVG)

The underlying index of the fund – the BlueStar 5G Communications Index – is a rules-based index that tracks the performance of a group of US-listed stocks, of global companies that are involved in the development of, or are otherwise instrumental in the rollout of 5G networks. It charges 30 bps in fees.

iShares U.S. Telecommunications ETF IYZ

The underlying Dow Jones U.S. Select Telecommunications Index includes companies in fixed-line telecommunications and mobile telecommunications sectors. Verizon takes about 23$ of the fund, occupying the top spot. The 41-stock fund charges 42 bps in fees.

Fidelity MSCI Consumer Discretionary Index ETF FDIS

The fund gives exposure to consumer discretionary stocks with Amazon taking the top spot (about 23%) (read: Gearing Up for Holiday Season: Amazon Versus Walmart ETFs).

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
First Trust Cloud Computing ETF (SKYY): ETF Research Reports
 
Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports
 
iShares U.S. Telecommunications ETF (IYZ): ETF Research Reports
 
Defiance Next Gen Connectivity ETF (FIVG): ETF Research Reports
 
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