As difficult as it may be, when you look for positive things in 2020, you may cite the internet of things (IoT). Among many other things, the internet has helped to facilitate communication amidst a pandemic stressing the need for social distancing. It is certainly benefitting the Global X Internet of Things ETF (SNSR).
Per Morningstar performance numbers, the fund has 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.
SNSR seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Internet of Things Thematic Index. The fund invests at least 80% of its total assets in the securities of the underlying index.
The underlying 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.
Double-Digit Growth Expected for IoT
Per a CRN article, the “pandemic took a hit on worldwide IoT spending this year, according to research firm IDC, but double-digit growth is expected to return in the next few years. Among the drivers for this increased spending — which will reach an annual growth rate of 11.3 percent over IDC’s 2020-2024 forecast period — will be a greater need for connected devices to enable remote operations and artificial intelligence to monitor human behavior.”
That said, SNSR should continue to experience exponential growth.
“The COVID-19 pandemic drove businesses and employees to become more reliant on technology for both professional and personal purposes,” Forrester wrote in October for its Predictions 2021: Technology Diversity Drives IoT Growth.
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