So, parsing the data, somewhere in the neighborhood of 10-30% of the U.S. Industry data indicates that 80%+ of households currently have access to gigabit internet speeds, which is 25x what the FCC classifies as broadband. The hurdles to broadband uptake likely lie in the cost of broadband relative to its perceived benefit (especially among older households) or problems with “last mile” connectivity, bringing the internet from your provider to your front door. KFVG charges 0.65% per year, or $65 on a $10,000 investment, which is reasonable in the realm of China thematic ETFs.Find out which stocks you should buy this month to make money in this changing market. That company makes components for Apple's Air Pods and the Apple Watch. Telecommunications gear maker Luxshare, another KFVG holding, delivered average annualized returns of almost 48% over that decade. What's Next: Home to 30 stocks, most of which hail from the communication services and technology sectors, offers investors a tactical avenue for potentially generating long-term outperformance of traditional China benchmarks.įor example, KFVG component SMIC, a semiconductor maker, has a 10-year average annualized return of 12.5% compared to 6.8% for the MSCI China Index. “Over the next five years, China’s telecom industry will spend at least $130 billion on 5G, roughly representing a third of total global capital expenditures.” “China has announced plans to spend $1.2 trillion yuan ($180 billion USD) to establish over 5 million 5G base stations throughout the country over the course of 2020-2025,” notes KraneShares. Investors appear to be smitten with KFVG as it's already among this year's top thematic ETFs in terms of asset-gathering proficiency, having hauled in $107.1 million as of Nov. By 2025, China is projected to have over 400 million 5G users, accounting for 40% of total global use,” notes KraneShares. “China is a world leader in 5G spending and adoption. Additionally, the country is on track to become by far the world's dominant 5G market. The country is hoping to produce 70% of needed chips on a domestic basis by 2025. ebb, China is still intent on bolstering its domestic chip industry. confirm, China has a voracious thirst for semiconductors and even if tensions with the U.S. Why It's Important: KFVG is relevant on multiple. The latest ETF from New York-based KraneShares tracks the CICC China 5G and Semiconductor Leaders Index, which provides exposure to “companies engaged in the 5G and semiconductor related businesses, including 5G equipment, semiconductors, electronic components and big data centers,” according to the issuer.
#5g technology etf free
What Happened: Thanks to the debut of the KraneShares CICC China 5G & Semiconductor ETF(NYSE: KFVG) last week, now there's an exchange-traded fund dedicated to China's insatiable thirst for chips and its free spending 5G ways. China is one of the largest technology markets in the world and the world's second-largest is spending heavily on the 5G rollout.