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What Investors Need to Know about the Internet of Things ETF

Neena Mishra
The Internet of Things is one of the hottest areas of technology, with massive growth potential. Here is what investors need to know the ETF that targets this theme.
  • (0:45) - What Is The Internet of Things?

  • (4:00) - Who Stands To Benefit The Most?

  • (7:25) - Global X Funds IoT ETF: SNSR

  • (11:45) - Cyber Security Risks

  • (13:40) - Thematic ETF Growth

  • (16:00) - Episode Roundup: Podcast@Zacks.com

The Internet of Things (IoT) has received a lot of attention over the past few years, thanks mainly to the growing appetite for connectivity. According to a McKinsey report, IoT could generate up to $11.1 trillion in economic value per year by 2025.

I spoke to Jay Jacobs, VP and Director of Research at Global X Funds. We discussed the Internet of Things and also the Global X Internet of Things ETF SNSR.

SNSR the first ETF to target this theme. The product holds companies that could benefit from the broader adoption of this technology.

We started with the simple question -- what is the Internet of Things?

Jay then talked about how big is IoT as of now and its potential growth in future. He also explained why investors should invest in this theme and which areas/companies stand to benefit most from IoT growth.

We also discussed the construction of the underlying index, which includes both pure-plays IoT companies and bigger, well-known companies with diversified revenue streams. The ETF has about 40% allocation to international stocks.

Semiconductors account more than 40% of the portfolio since chipmakers are among the biggest beneficiaries of surging demand for internet-connected devices.

A recent survey of150 semiconductor industry leaders by KPMG revealed that these companies see IoT as one of the top revenue drivers this year.

Global X has some other very interesting thematic ETFs including the Social Media ETF SOCL, FinTech ETF FINX, and the Robotics & Artificial Intelligence ETF BOTZ.  

Jay explained how investors can benefit from these powerful macro-level themes and trends.

For any question or comments, please write to us at podcast@zacks.com.

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GLBL-X SOCL MDA (SOCL): ETF Research Reports
 
GLBL-X FINTECH (FINX): ETF Research Reports
 
GLBL-X IOT ETF (SNSR): ETF Research Reports
 
GLBL-X ROB&ART (BOTZ): ETF Research Reports
 
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Zacks Investment Research