Best 5G ETFs to buy in 2023

If you’re interested in the telecom services and technology markets, you’ve probably heard a lot about 5G, the new generation of wireless communication networks.
By:
Updated: Oct 11, 2022
Listen

Get started in minutes with our preferred broker, Skilling.

9/10

82% of retail CFD accounts lose money.

  • Save
Visit site

Choosing the right 5G stocks as the 5G theme develops isn’t easy, but you might not need to choose individual stocks at all. If you want a ready-made 5G portfolio that doesn’t require intensive monitoring, investing in one or more 5G exchange-traded funds (ETFs) might be your best option for gaining portfolio exposure to the next generation of wireless networks.

In this guide, we are to talk about 5G ETFs and the ones to buy in 2022.

What are the top 5G ETFs to buy?

Copy link to section

Here are the top 10 ETFs that focus on 5G:

#ETF nameWhere to Trade
1First Trust Indxx NextG ETF
Buy NXTG

77% of retail CFD accounts lose money.

2Vanguard Communication Services ETF
Buy VOX

77% of retail CFD accounts lose money.

3iShares U.S. Telecommunications ETF
Buy IYZ

77% of retail CFD accounts lose money.

4Defiance Next Gen Connectivity ETF
Buy FIVG

77% of retail CFD accounts lose money.

5Global X Internet of Things ETF
Buy SNSR

77% of retail CFD accounts lose money.

6Pacer Benchmark Data and Infrastructure Real Estate ETF
Buy SCTR

77% of retail CFD accounts lose money.

7SPDR S&P Telecom ETF
Buy SPDR

77% of retail CFD accounts lose money.

8VanEck Vectors Semiconductor ETF
Buy SMH

77% of retail CFD accounts lose money.

9Global X MSCI China Communication Services ETF
Buy CHIC

77% of retail CFD accounts lose money.

10Esoterica NextG Economy ETF
Buy WUGI

77% of retail CFD accounts lose money.

List chosen by our team of analysts, updated September 2023.

1. First Trust Indxx NextG ETF

Copy link to section

One of the best ways to expand portfolio exposure to next-generation mobility is through First Trust’s 5G ETF. The fund invests in stocks of companies with market capitalizations of at least $500 million that are involved in the development and deployment of 5G technology.

With less than $1 billion in assets-under-management (AUM), the First Trust Indxx NextG ETF is not the largest ETF on this list. However, it has been in existence since 2011 and has doubled in value since 2016. It has an annual cost ratio of 0.70 percent, which means that for every $1,000 invested, $7 in fund management fees are charged per year.

77% of retail CFD accounts lose money.

2. Vanguard Communication Services ETF

Copy link to section

Vanguard Communication Services ETF is the biggest telecom ETF currently investing in 5G companies. Verizon Communications (NYSE: VZ), Comcast Corporation (NASDAQ: CMCSA), and AT&T are among the biggest 5G assets. Other significant holdings include Facebook (NASDAQ: FB) and Google’s parent company Alphabet (NASDAQ: GOOG). This ETF will provide you with diverse exposure to the 5G market and beyond, thanks to widespread investments in some of the largest US tech companies.

77% of retail CFD accounts lose money.

3. iShares U.S. Telecommunications ETF

Copy link to section

The iShares U.S. Telecommunications ETF is a good option if you’re looking for investment returns. Its 44 stocks are primarily telecommunications companies. AT&T and Verizon account for 40% of the fund’s overall holdings by size, along with a portfolio of stocks from large technology firms (like Cisco) that offer mobile network infrastructure and software management resources.

77% of retail CFD accounts lose money.

4. Defiance Next Gen Connectivity ETF

Copy link to section

The Connectivity ETF invests in companies that develop technologies allowing 5G providers to deliver services. Hardware manufacturers account for approximately 75% of the fund’s AUM, distinguishing it from rivals such as the Vanguard Communication Services ETF that focuses mostly on software manufacturers. Many of the assets overlap with those of the First Trust Indxx NextG ETF.

77% of retail CFD accounts lose money.

5. Global X Internet of Things ETF

Copy link to section

The phrase “internet of things” (IoT) refers to a network of devices that are linked together through the internet, such as an Amazon’s Alexa that you can control through your phone. Consider this ETF if you want to invest in companies that make goods that incorporate 5G technology. The majority of the shares are in companies that manufacture GPS devices and wireless communication solutions.

77% of retail CFD accounts lose money.

Where to buy the best 5G ETFs

Copy link to section

Whether you’re investing in 5G ETFs for the long term, or looking to trade in and out more regularly, you’ll find that most brokers will allow you to trade 5G ETFs. Be sure to research the best broker for you.

1
Min. Deposit
$ 10
Best offer
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA

77% of retail CFD accounts lose money.

2
Min. Deposit
$ 0
Best offer
User Score
9.9
Get insights from millions of investors, creators, and analysts
Build your portfolio of stocks, ETFs, and crypto–all in one place
No minimum deposit
Start Trading
Payment Methods:
Bank Wire, Check, Debit Card, Wire Transfer
Full Regulations:
Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.
3
Min. Deposit
-
Best offer
User Score
9.4
Scope Markets is a regulated entity, following strictly the segregated accounts principal by offering a wide range of products together with Multi-Platform trading facilities.
Scope Markets offers one of the most comprehensive multimedia trading education libraries for traders all levels.
We commit to full transparency, excellence and continuous innovation.
Start Trading
Payment Methods:
Full Regulations:

Invest in 5G ETFs in 3 Steps

Copy link to section

1. Open a Trading Account
The first step is to register with an online broker. Pay attention to commissions and keep an eye out for hidden fees such as interest on margins (borrowed money) or withdrawal service fees. Take note of trading restrictions and minimum account balances as well.

2.Choose 5G ETFs
Your broker’s online portal will show a list of available ETFs (including 5G ETFs), and some platforms will allow you to narrow the list to find ETFs from a specific provider or with low fees.

3.Execute Your Trade
When you’ve found the ETF you want to buy, you can purchase it from your broker in about the same way you do a stock.

What are 5G ETFs?

Copy link to section

5G, which stands for the “fifth generation” of mobile technology, is the next big standard for broadband cellular networks. Experts predict that 5G networks will eventually provide consumers with data speeds of up to 10 gigabytes per second.

An exchange-traded fund (ETF) is a basket of stocks that trades on the stock market like an ordinary share of stock. Unlike mutual funds, ETFs can be purchased at any time during the trading day. The stocks included in an ETF are generally driven by a theme. For instance, a 5G ETF will hold the stocks of companies that offer 5G services.

Now you know what 5G ETF is, let’s look at how to invest in 5G ETFs.

Are 5G ETFs a good investment?

Copy link to section

As 5G expands, including a 5G ETF in your portfolio offers a rare combination of diversification and exposure to developing technology. If you plan to invest in ETFs, you should first understand the cost ratio associated with each fund. For the lowest expense ratio, consider the Vanguard Communication Services ETF, which has a low expense ratio of 0.10 percent.

Investing in ETFs can be a simple and convenient way to benefit from the advancement of 5G technology. ETFs have built-in diversification and are less volatile in price than individual stocks. But keep in mind that 5G is a growing industry. As a result, expect some uncertainty as the 5G infrastructure is introduced and customer and business adoption grows.

Latest 5G ETFs news

Copy link to section
Costco Wholesale Corporation (NASDAQ: COST) is trading down in extended hours even though it reported market-beating results for its fiscal fourth quarter. Jefferies analyst shares his view on Costco Even though the membership warehouse retailer came in ahead of Street estimates – pockets of w
Rivian Automotive Inc (NASDAQ: RIVN) is currently down 20% versus its year-to-date high but a Baird analyst is convinced that a full recovery is coming soon. Rivian to report quarterly deliveries next week Ben Kallo expects the electric vehicles company to come in ahead of Street estimates as it rep
T2 Biosystems (NASDAQ: TTOO) stock price sell-off continued as the company continued facing numerous headwinds. The shares dropped to a low of $0.1884 on Tuesday, the lowest level since August 2nd. It has dropped by more than 70% from its highest point in August and by almost 100% from its all-time
W.P Carey (NYSE: WPC) stock price has been in a strong freefall in the past few months. This sell-off gained steam this month when the company made huge changes to its business and effectively slashed their dividend. The stock plunged to a low of $53.98 on Tuesday, the lowest level since November 20
Amazon.com Inc (NASDAQ: AMZN) is in focus today after the FTC along with 17 states filed an antitrust lawsuit against the tech behemoth. Amazon accused of undermining competition The Federal Trade Commission and the attorney generals of the respective states accused the multinational in their compla
United Parcel Service Inc (NYSE: UPS) just announced plans of hiring over 100,000 seasonal workers to prepare for the holiday demand. UPS workers will be paid higher this year The transportation giant will pay $21 an hour to driver helpers and package handlers and $23 an hour to delivery and tractor

FAQs

Should you invest in 5G ETFs?
What should I do if I am a beginner?
Do 5G ETFs distribute dividends?
Do you need a pro to set up and monitor the 5G ETF portfolio?
Is there a good or bad time to buy 5G ETFs?
Who can benefit most from investing in 5G ETFs?


Sources & references
Risk disclaimer