Many of us interested in IoT are curious about how to invest in the sector. If you’re like me, trying to decide on which stocks to buy, which to watch, and how to do so internationally, one quickly realizes that sort of due diligence is a full-time job.
Fortunately there is an exchange traded fund (ETF) that tracks IoT. This new ETF “…seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Internet of Things Thematic Index.”
The Global X Internet of Things Thematic ETF (SNSR) seeks to invest in companies that stand to potentially benefit from the broader adoption of the Internet of Things (IoT). This includes the development and manufacturing of semiconductors and sensors, integrated products and solutions, and applications serving smart grids, smart homes, connected cars, and the industrial internet.
Since I didn’t know anything about Global X, nor what appears to be a sister company Indxx, I did some research. Turns out the company has many ETFs that are either thematic or objective based (e.g., Fintech; MLPs and Energy; Risk Management Funds). In this relatively new IoT ETF, GlobalX currently holds $1.5B+ in assets and has a fairly low management fee of .68%. The companies being tracked include many you’ve heard of such as Garmin, Cypress Semiconductor and Brocade. Many are international ones you might now know such as Mobileye NV and Sensata Tech Holdings NV. But after all of my research, examining the top 10 companies they invest in as well as their full holdings (.csv), I placed my order.
Disclaimer: If my attorney was at my side as I write this post he’d likely tell me to write a disclaimer here so I will: This post is not an endorsement nor recommendation on my part nor am I qualified to dispense financial advice, so you should perform your own due diligence before investing. But I did want to bring this to the attention of anyone else, like me, who knows IoT is likely to grow exponentially within the next decade and would like to be rewarded for having a little foresight.
For further reading:
- Invest in the Internet of Things – Zacks
- Indxx LLC Launches Three Thematic Indices, Licensed to Global X Funds for Exchange Traded Funds – Zacks
- ETFs: A roadmap to growth (PDF) by PwC
GlobalX Internet of Things Infographic: