Best Thematic ETF for 2020: Cloud, Internet of Things & More

Best Thematic ETF for 2020: Cloud, Internet of Things & More

  • (1:15) – Global X Cloud Computing ETF: CLOU
  • (6:00) – Global X Internet of Things ETF: SNSR
  • (11:20) – Global X Video Games & Esports ETF: HERO
  • (15:45) – Global X U.S. Infrasturcture Development ETF: PAVE
  • (20:35) – Global X Thematic Growth ETF: GXTG
  • [email protected]

In this episode of ETF Spotlight, I speak with Jay Jacobs, Head of Research & Strategy at Global X. Global X is well known for its suite of 17 ETFs focused on disruptive growth trends.

Cloud is fast emerging as the new model of computing as many companies now prefer to rely on cloud based service providers for highly specialized computing services so that they can focus on their core businesses.

Cloud computing revenues soared 246% in the past decade, and are expected to grow by another 30% before 2023, according to Gartner.

The Global X Cloud Computing ETF CLOU, which made its debut in April last year, has already gathered about $468 million in assets. While Amazon AMZN and Microsoft MSFT—the leaders in cloud computing—are included in the portfolio, the fund’s top holdings are pure-play cloud companies like Zscaler ZS, Shopify SHOP and Twilio TWLO.

The Internet of Things (IoT) has received a lot of attention over the past few years, thanks mainly to the growing appetite for smart, connected devices. The Economist says in a recent issue: “One forecast is that by 2035 the world will have a trillion connected computers, built into everything from food packaging to bridges and clothes.”

5G technology will enable handling massive data volumes at very high speeds from billions of connected devices and unlock the full potential of the IoT.

The Global X Internet Of Things ETF SNSR holds companies that facilitate the IoT industry. Its top holdings include Skyworks SWKS and DexCom DXCM.

The Global X Video Games & Esports ETF HERO invests in video game developers & publishers, hardware manufacturers, esports and streaming providers, and operators and owners of leagues. Nvidia NVDA and Electronic Arts EA are among the top holdings.

The Global X U.S. Infrastructure Development ETF PAVE could benefit from bipartisan support for investing in America’s infrastructure.

The Global X Thematic Growth ETF GXTG is a fund of funds that invests in a basket of individual thematic ETFs.

Please visit GlobalX to learn more about these ETFs. Make sure to be on the lookout for the next edition of the ETF Spotlight! If you have any comments or questions, please email [email protected]

Disclosure: I own CLOU and SNSR in the ETF Investor portfolio that I manage.

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