Chatter about the Internet of Things (IoT) is increasing, and while IoT is often viewed as a theme with major implications for the communication services and technology sectors, there’s more to the story. That’s vital to the thesis for the Global X Internet of Things Thematic ETF (NasdaqGM: SNSR).
SNSR targets the Indxx Global Internet of Things Thematic Index. IoT “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,” according to Global X.
Amid the coronavirus pandemic, IoT’s healthcare applications are becoming more prominent, providing another long-term catalyst for SNSR.
“Healthcare providers have been turning to the Internet of Medical Things (IoMT) to facilitate their digital transformation since before the coronavirus hit the US — but the pandemic has caused a sea change in providers’ willingness to implement IoT solutions that augment efforts in preparing for, containing, and diagnosing the virus,” according to Business Insider.
The SNSR ETF: An Emerging Frontier
SNRS’s index is designed to provide exposure to exchange-listed companies in developed markets that facilitate the Internet of Things industry, including companies involved in wearable technology, home automation, connected automotive technology, sensors, networking infrastructure/software, smart metering, and energy control devices.
Amid the Covid-19 pandemic, there’s been a heavier reliance on technology, including the internet of things to facilitate communications amid social distancing and lockdown measures. However, it’s also positively impacting the way medical services are delivered with more advanced technology.
“As the backbone that powers the IoMT, connectivity and technology providers have a mounting opportunity to capture a larger slice of the market as it evolves alongside the coronavirus pandemic,” notes Business Insider. “Prior to the pandemic, healthcare providers were forecast to adopt IoT devices at one of the fastest rates of any industry segment, with the installed base of IoT endpoints expected to grow 29% year-over-year in 2020.”
Per Morningstar performance numbers, SNSR been able to generate a return of 29% year-to-date amid the pandemic. It boasted a stellar 48% gain in 2019. As more societal demands on social distancing increase as the number of coronavirus cases rise, the internet will continue to play a vital role through the end of 2020 and beyond.
“And pre-pandemic, healthcare was among the top three industries expected to see the fastest growth rates (15.4%) in IoT investment in terms of spending over the 2017-2022 forecast period,” concludes Business Insider.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.