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Profit from the Internet of Things and Cloud Computing with These ETFs

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  • (1:00) - The Big Switch To Cloud Computing: Breaking It All Down
  • (8:50) - What Is The Size and Growth Potential For Cloud Computing
  • (10:30) - Global X Funds Cloud Computing ETF: CLOU
  • (14:10) - What Exactly Is The Internet of Things (IoT)?
  • (19:20) - Size and Growth Potential For The IoT?
  • (21:30) - Global X Internet of Things ETF: SNSR
  • (26:15) - How Should Investors Use Thematic ETFs?
  • (28:10) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I discuss cloud computing and the Internet of Things with Jay Jacobs, Head of Research & Strategy at Global X.

Microsoft (MSFT - Free Report) recently reached $1 trillion market value, thanks mainly to strong growth in its cloud computing business. And most of Amazon’s (AMZN - Free Report) operating income comes from Amazon Web Service (AWS) now.

We discuss the benefits of cloud computing and why so many businesses are migrating to the cloud now. The global cloud computing market is estimated to grow to more than $300 billion by 2022, up from about $188 billion currently.

The Global X Cloud Computing ETF (CLOU - Free Report) holds companies that are positioned to benefit from growing adoption of cloud computing technology. Its top holdings include Zscaler (ZS - Free Report) , Shopify (SHOP - Free Report) and Twilio (TWLO - Free Report) . Jay explains how stocks are selected and weighted in the index.

The Internet of Things (IoT) has received a lot of attention in the past few years, thanks mainly to the growing appetite for connectivity. In simple words, IoT could be an ecosystem of devices that have chips and are connected to the internet, enabling them to capture and transmit data constantly and giving them the ability to communicate.

A McKinsey report estimates that the IoT could have an annual economic impact of $4 trillion to $11.1 trillion by 2025. We discuss which areas stand to benefit most from this exponential growth.

5G technology will enable handling massive data volumes at very high speeds from billions of connected devices and facilitate smarter homes, factories, farms and cities. Jay explains how 5G would unlock the full potential of the IoT.

The Global X Internet Of Things ETF (SNSR - Free Report) holds companies that facilitate the IoT industry. Its top holdings include Garmin (GRMN - Free Report) , Skyworks (SWKS - Free Report) and Qualcomm (QCOM - Free Report) .

Global X is well known for its suite of very interesting thematic ETFs.  We discuss how investors should use thematic strategies in a portfolio.

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 podcast@zacks.com

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