Individual Investors

How to invest in 5G

5G is anticipated to transform the world, bringing new efficiencies and opportunities to how we live and work. For investors interested in incorporating this growth theme within their portfolios, the options are broader than simply telecommunications companies.

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. It is anticipated to transform the ‘internet of things’ and become the force for the fourth industrial revolution.

The fourth industrial revolution refers to how cyber physical systems are expected to drive the next era of industrial reform and change, bringing new efficiencies and opportunities to how we live and work1.

Wireless networks are integrated into our lives and 5G sees that dependency increase further in the immediate future. It is already here in its early stages.

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 environment2.

How to invest in 5G

There are a range of options to consider for investors keen to incorporate 5G within their investments. Three options are listed below.

  1. Broad investments across sectors given all companies will need to use 5G in some form at some stage, be it to conduct business operations or as part of their services.

  2. Sector investments such as via telecommunications companies which will be building the infrastructure to support 5G.

  3. Thematic investments covering the 5G supply chain. The supply chain extends from underlying technology suppliers and producers to companies creating technology and software for automation, robotics and artificial intelligence which will advance substantially from the use of 5G.

Interested in accessing 5G exposure by using robotics, automation and artificial intelligence? Find out more about ETFS ROBO Global Robotics and Automation ETF (ASX code: ROBO) or contact us.

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[1] https://www.hitechnectar.com/blogs/fourth-industrial-revolution-5g-future/

{2} https://insights.roboglobal.com/as-the-covid-19-storm-rages-on-3-waves-of-growth-are-on-the-horizon