Liquid Alternatives: 5G-Themed, “The First 5G ETF” (NYSE: FIVG) Rakes in $200 Million

January 28, 2020 | Fund Updates, Liquid Alternatives
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The First 5G ETF (NYSE: FIVG), from the Defiance stable, mopped up AUM of over $200 million in less than 12 months.

FIVG, a thematic ETF focused on investing around the theme of 5G connectivity, has met with an enthusiastic response from investors. Defiance ETF’s, the fund managers behind FIVG, said the achievement of a $ 200 million AUM in less than 12 months made it one of the most successful thematic ETF launches in recent years.

Response from investors

Paul Dellaquila, president Defiance, had this to say (speaking to IBD) on the solid response to the FIVG thematic ETF:

“There was obviously investor demand and appetite for this type of exposure. But the real success came because we executed on our mission. We developed a reasonably priced solution for investors to express a view to potentially one of the more exciting and transformative technologies of our generation.”

FIVG

The ETF is a passive index fund that tracks the BlueStar 5G Communications Index. Furthermore, it invests in equipment companies, service providers and chip manufacturers that have businesses whose fortunes are linked to the telecom industry in general, and 5G in particular.

About 5G technology

5G is a technology that will support the next era in mobile communications. Faster speeds, better functionality, and lower latency are key features of 5G.

Widespread 5G connectivity has the potential to make information universally accessible, foster a digitalized sharing economy, transform diverse industries and enhance people’s quality of life, according to Defiance.

Moreover, 5G will find application cutting-edge technologies such as  Enhanced Mobile Broadband (EMBB), Massive Internet of Things (MIoT) and Mission Critical Services (MCS).

5G technology is expected to be widely available to US consumers by mid-2020.

Benefits of investing in the Defiance Next Gen Connectivity ETF-FIVG

The investment case for FIVG:

  • A diversified basket of stocks that can potentially benefit from the expansion of the 5G market and the success of 5G-investing company stocks. Rather than buy one or two individual equities focused on this sector, investors can invest in a way that provides diversification while maintaining a targeted view for their portfolio.
  • Exposed to those leading the market, including Verizon, At&T, Nokia, Ericsson, Qualcomm, Skyworks Solutions, Cisco, Broadcom and Xilinix.
  • Further, it’s a cost-effective way to access this market at 0.30% gross expense ratio.

FIVG fund facts

Net assets as of January 27, 2020 – $ 214.82 million

NAV – $ 26.36

Total returns from inception – 5.64%

6 monthly returns – 9.82%

3 monthly returns – 7.33%

Expense ratio – 0.30%

Key Holdings is on January 28, 2020

Percentage Of Net Assets Name Identifier Shares Held Market Value
5.22% NXP SEMICONDUCTORS N V NXPI 87,563 1,14,22,593.35
5.21% NOKIA CORP NOK 28,93,768 1,14,01,445.92
4.94% QUALCOMM INC QCOM 1,24,204 1,08,11,958.20
4.64% ANALOG DEVICES INC ADI 90,399 1,01,43,671.79
4.23% ERICSSON ERIC 11,22,375 92,59,593.75
4.06% XILINX INC XLNX 91,573 88,82,581.00
3.14% AKAMAI TECHNOLOGIES INC AKAM 72,955 68,74,549.65
3.13% AMERICAN TOWER CORP AMT 28,792 68,37,236.24
2.82% AT&T INC T 1,61,128 61,63,146.00
2.79% KEYSIGHT TECHNOLOGIES INC KEYS 61,034 61,04,010.34

Related Story:  FinTech ETF Hits 52-Week High                                                  

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