The Top 5 Internet of Things ETFs to Invest In
Internet of Things (IoT) is a rapidly growing concept that has revolutionized the way we connect to the world around us. IoT involves connecting various devices and machines to the internet, enabling them to communicate and share data with each other. With the growing popularity of IoT, investors are increasingly interested in investing in companies involved in this space. One way to do this is by investing in IoT exchange-traded funds (ETFs). In this article, we will discuss the top 5 IoT ETFs to invest in.
1. Global X Internet of Things ETF (SNSR)
SNSR is one of the most popular IoT ETFs, with assets under management of over $1 billion. The ETF aims to invest in companies that are involved in the research, development, and deployment of IoT technology. The ETF has holdings in over 50 companies, with the top holdings being Intel, Cisco, and ARM Holdings. The ETF has a relatively high expense ratio of 0.68%, but it offers exposure to a diversified portfolio of IoT-related companies.
2. First Trust NASDAQ Technology Dividend ETF (TDIV)
TDIV is not solely focused on IoT, but it has a significant exposure to IoT-related companies. The ETF aims to invest in technology companies that pay dividends. The ETF has holdings in 102 companies, with the top holdings being Cisco, Intel, and Apple. The ETF has a low expense ratio of 0.50%, making it a cost-effective investment option.
3. Invesco QQQ ETF (QQQ)
QQQ is not exclusively focused on IoT, but it includes companies involved in IoT technology and applications. The ETF tracks the NASDAQ-100 index, which includes large-cap technology companies. The ETF has holdings in 102 companies, with the top holdings being Apple, Microsoft, and Amazon. The ETF has a low expense ratio of 0.20%, making it a good investment option for those seeking exposure to the technology sector.
4. iShares U.S. Technology ETF (IYW)
IYW is not solely focused on IoT, but it has holdings in companies that are involved in IoT technology. The ETF aims to invest in large- and mid-cap U.S. technology companies. The ETF has holdings in 162 companies, with the top holdings being Apple, Microsoft, and Facebook. The ETF has a relatively low expense ratio of 0.42%, making it a cost-effective investment option.
5. SPDR S&P Technology Hardware ETF (XTH)
XTH is an ETF that focuses on hardware technology companies, including those involved in IoT technology. The ETF has holdings in 46 companies, with the top holdings being Apple, Cisco, and Intel. XTH has a relatively high expense ratio of 0.35%, but it offers exposure to a portfolio of hardware technology companies.
Conclusion
IoT technology is rapidly gaining popularity, and investing in IoT ETFs can be a great way to gain exposure to this market. The top 5 IoT ETFs discussed in this article offer exposure to a diversified portfolio of companies involved in IoT technology. Investors should carefully consider their investment objectives, risk tolerance, and other factors before investing in any ETF.
