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Amid the long-standing Sino-U.S. trade tensions and the U.S. government’s investigation into the largest tech companies of the country for anti-competitive practices, the U.S. tech sector has been firing on all cylinders. Technology Select Sector SPDR Fund (XLK - Free Report) has surged 33% this year compared with the 15% year-to-date gain of the S&P 500 Index (read: Tech ETFs Brush Aside Antitrust-Led Slump to Hit Highs).
The ongoing earnings season that has been more resilient than thought, an air of easy money policy in the global economy (to counter the slowdown fears) and the rapid emergence of newer technology have been the wind beneath the sector’s wings.
So far, about 30.2% of the total S&P 500 market cap has reported earnings, of which 80% of the companies beat estimates on both counts. There has been an earnings dip of 0.8% on 4.6% higher revenues to date this reporting cycle, per Earnings Trends published on Jul 24, 2019. It shows that the second-quarter 2019 earnings performance of the tech sector has been quite satisfactory.
This makes it clear to bet on some low-priced emerging technology ETFs.
Why Low Price is Important
In a nutshell, an emerging technology feature clubbed with cheaper prices could make an intriguing investment choice at the current level. After all, with low-priced securities, retail buyers would need less cash to join the market.
Also, securities at or below $30 can reap considerable profits as the share price increase of a dollar adds 3.3% gains to one’s portfolio. On the other hand, securities priced at $100 or above see 1% or less gain if their share price rises by $1.
Honing in on low-priced securities is all the more important as the tech-heavy Nasdaq is hovering around an all-time high, which makes the index little pricier.
Thus, we highlight a few emerging technologies ETFs at or under $30 that investors can keep a watch on in the days to come.
The latest IDC study sees global spending on public cloud services and infrastructure to be more than double by 2023, mainly driven by the digital transformation deployments.The spending is expected to grow at a rate of 22.3% from $229 billion (£182b) in 2019 to nearly $500 billion (£398b) in 2023.
Global X Internet of Things Thematic ETF (SNSR - Free Report) — $19.25
A new report from IDC states that global spending on IoT will cross $1 trillion by 2022 and hit $1.1 trillion a year later. The report projects the compound annual growth rate (CAGR) for IoT spending between now and 2023 to be 12.6%.
The fund follows the BlueStar Quantum Computing and Machine Learning Index. In March, IDC projected that global outlays on Artificial Intelligence will jump to about $35.8 billion in 2019, suggesting a 44% surge from the year-ago figure. This favorable data indicates the upbeat prospect lies with quantum computing and machine learning.
The underlying Innovation Labs Blockchain Innovators Index measures the performance of a diversified group of publicly-listed companies that use or are involved in, blockchain. By 2022, blockchain investment across industries is expected to reach $12.4 billion per research firm IDC as quoted on Reuters. Last year, the capital markets and banking sectors assigned $1.7 billion to blockchain initiatives, up 70% from 2016 according to estimates by the research and advisory firm Greenwich Associates as quoted on Reuters.
First Trust NASDAQ CEA Cybersecurity ETF (CIBR - Free Report) — $28.55
Global spending on information security (part of the broader cybersecurity market) products and services exceeded $114 billion in 2018, marking a rise of 12.4% from 2017 according to Gartner Inc. For 2019, this global research and advisory firmforecasts the market to expand to $124 billion and $170.4 billion in 2022.
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5 Niche Tech ETFs to Grab at $30 or Below
Amid the long-standing Sino-U.S. trade tensions and the U.S. government’s investigation into the largest tech companies of the country for anti-competitive practices, the U.S. tech sector has been firing on all cylinders. Technology Select Sector SPDR Fund (XLK - Free Report) has surged 33% this year compared with the 15% year-to-date gain of the S&P 500 Index (read: Tech ETFs Brush Aside Antitrust-Led Slump to Hit Highs).
The ongoing earnings season that has been more resilient than thought, an air of easy money policy in the global economy (to counter the slowdown fears) and the rapid emergence of newer technology have been the wind beneath the sector’s wings.
So far, about 30.2% of the total S&P 500 market cap has reported earnings, of which 80% of the companies beat estimates on both counts. There has been an earnings dip of 0.8% on 4.6% higher revenues to date this reporting cycle, per Earnings Trends published on Jul 24, 2019. It shows that the second-quarter 2019 earnings performance of the tech sector has been quite satisfactory.
This makes it clear to bet on some low-priced emerging technology ETFs.
Why Low Price is Important
In a nutshell, an emerging technology feature clubbed with cheaper prices could make an intriguing investment choice at the current level. After all, with low-priced securities, retail buyers would need less cash to join the market.
Also, securities at or below $30 can reap considerable profits as the share price increase of a dollar adds 3.3% gains to one’s portfolio. On the other hand, securities priced at $100 or above see 1% or less gain if their share price rises by $1.
Honing in on low-priced securities is all the more important as the tech-heavy Nasdaq is hovering around an all-time high, which makes the index little pricier.
Thus, we highlight a few emerging technologies ETFs at or under $30 that investors can keep a watch on in the days to come.
Global X Cloud Computing ETF (CLOU - Free Report) — $15.42
The latest IDC study sees global spending on public cloud services and infrastructure to be more than double by 2023, mainly driven by the digital transformation deployments.The spending is expected to grow at a rate of 22.3% from $229 billion (£182b) in 2019 to nearly $500 billion (£398b) in 2023.
Global X Internet of Things Thematic ETF (SNSR - Free Report) — $19.25
A new report from IDC states that global spending on IoT will cross $1 trillion by 2022 and hit $1.1 trillion a year later. The report projects the compound annual growth rate (CAGR) for IoT spending between now and 2023 to be 12.6%.
Defiance Quantum ETF (QTUM - Free Report) — $24.37
The fund follows the BlueStar Quantum Computing and Machine Learning Index. In March, IDC projected that global outlays on Artificial Intelligence will jump to about $35.8 billion in 2019, suggesting a 44% surge from the year-ago figure. This favorable data indicates the upbeat prospect lies with quantum computing and machine learning.
Innovation Shares NextGen Protocol ETF (KOIN - Free Report) — $26.23
The underlying Innovation Labs Blockchain Innovators Index measures the performance of a diversified group of publicly-listed companies that use or are involved in, blockchain. By 2022, blockchain investment across industries is expected to reach $12.4 billion per research firm IDC as quoted on Reuters. Last year, the capital markets and banking sectors assigned $1.7 billion to blockchain initiatives, up 70% from 2016 according to estimates by the research and advisory firm Greenwich Associates as quoted on Reuters.
First Trust NASDAQ CEA Cybersecurity ETF (CIBR - Free Report) — $28.55
Global spending on information security (part of the broader cybersecurity market) products and services exceeded $114 billion in 2018, marking a rise of 12.4% from 2017 according to Gartner Inc. For 2019, this global research and advisory firmforecasts the market to expand to $124 billion and $170.4 billion in 2022.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>