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Though the broader markets remained soft at the start of August on renewed trade tensions, Trump’s announcement of delayed enactment of tariffs and a host of global stimulus charged up the broader markets. Tech stocks benefited greatly from the announcement. After all, Apple’s (AAPL - Free Report) iPhones will not be subject to new import taxes until mid-December.
According to U.S. Census data, “China supplied 82% of U.S. cell phones and 94.5% of U.S. laptops in 2018.” So, a delay in tariffs in such stuffs boosted tech space along with the broader market, resulting in a slightly elevated price.
Notbaly,Technology Select Sector SPDR Fund (XLK - Free Report) has surged 27.6% this year compared with the 15.7% year-to-date gain of the S&P 500 Index. So, grabbing some low-priced tech ETFs could be a good idea now.
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 ETF Invesco QQQ Trust (QQQ - Free Report) is trading at 3.6% discount to 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) ) — $15.55
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 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.
Image: Bigstock
5 Tech ETFs to Pick at $30 or Below
Though the broader markets remained soft at the start of August on renewed trade tensions, Trump’s announcement of delayed enactment of tariffs and a host of global stimulus charged up the broader markets. Tech stocks benefited greatly from the announcement. After all, Apple’s (AAPL - Free Report) iPhones will not be subject to new import taxes until mid-December.
According to U.S. Census data, “China supplied 82% of U.S. cell phones and 94.5% of U.S. laptops in 2018.” So, a delay in tariffs in such stuffs boosted tech space along with the broader market, resulting in a slightly elevated price.
Notbaly,Technology Select Sector SPDR Fund (XLK - Free Report) has surged 27.6% this year compared with the 15.7% year-to-date gain of the S&P 500 Index. So, grabbing some low-priced tech ETFs could be a good idea now.
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 ETF Invesco QQQ Trust (QQQ - Free Report) is trading at 3.6% discount to 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) ) — $15.55
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 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) ) — $24.79
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) — $26.44
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.
AdvisorShares Sabretooth ETF (BKCH - Free Report) — $26.58
The AdvisorShares Sabretooth ETF holds that companies utilizing cloud computing and digital companies that deploy emerging technology like blockchain.
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