Investment Professionals

5G investments for your clients

The story of 5G is more than just an added boost to your phone and home wifi, it could transform the way we live and do business. From this perspective, it may form part of your clients’ growth investments now and into the future.

What is 5G?

Fifth generation wireless (5G) is a technology infrastructure system allowing communications and data access on-the-go, much in the same way that previous generations including the currently used 4G offered.

While 5G was coming anyway, the COVID pandemic may see some companies accelerate their plans to access 5G-enabled technology, particularly automation, both as a safeguard against future lockdowns or simply to allow them to continue basic operations in the current environment1.

Verizon estimates that “by 2035, 5G will enable $12.3 trillion of global economic output and support 22 million jobs worldwide”2.

How to incorporate 5G exposure into your clients’ portfolios?

In a typical investment portfolio, clients are highly likely to have some exposure to 5G already, in the form of telecommunications companies or companies which manufacture phones and other IT systems. However, it may be valuable to consider the broader 5G supply chain for a more diversified exposure.

It extends from underlying technology suppliers and producers, such as companies like Qualcomm or National Instruments creating specialised chips and semi-conductors used in devices to create access to 5G, to companies creating technology and software for industrial automation, robotics and artificial intelligence which will advance substantially from the use of 5G, like Ocado or Daifuku.

Much of the supply chain is dominated by robotics, automation and AI companies which is where an ETF like ETFS ROBO Global Robotics and Automation ETF (ASX code: ROBO) can assist with exposure to the 5G transformation.

For more information on investing in 5G and ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO), please contact us.

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[1] https://insights.roboglobal.com/as-the-covid-19-storm-rages-on-3-waves-of-growth-are-on-the-horizon

[2] https://www.verizon.com/about/our-company/5G/how-5g-can-power-industrial-internet-things