- The arrival of 6G is imminent.
- Pioneers in the 5G sphere like Ericsson, Nokia, AT&T and Samsung are also primed for roles in 6G.
- Investments in 6G are beginning to gain traction.
Since many investors are still wrapping their minds around 5G stocks, it wouldn’t be surprising for talk of 6G stocks to send them off the deep end. Regardless, the arrival of 6G is imminent with some suggesting that 6G technology could arrive around 2028 at the very earliest.
Here’s a guide on investing in 6G, the impact 6G could have on everyday life, along with some of the 6G stocks that have the potential to dominate this new sphere.
6G Stocks Explained
The immediate follow up to 5G networks, 6G leverages increased frequency bandwidth to provide increased data thresholds and to decrease latency. Another expectation of 6G technology is that it could provide users with enhanced data transfer rates of exactly 1 terabyte per second. It’s also expected to provide users with access points that are capable of servicing more than one client at the same time.
5G supports and unites numerous types of disparate technologies. They include edge and cloud computing, along with artificial intelligence (AI). 6G is capable of integrating them into one unified system that maximizes the usage of each of these technologies. Theoretically, the implementation of 6G will result in extended 5G application performance, while broadening the realm of possibilities for how it can be used.
By ensuring increased data throughput, improved sampling rates and faster data rates, “connectivity becomes like air,” according to VP of Advanced Technologies at cloud computing company VMware. “Just imagine if you have that level of connectivity – what is the impact to society? What is the impact to our daily lives?” he says.
6G could facilitate:
- Quick, safe and dependable decision making capabilities when it comes to crime, social credit and potential cases of fraud
- Facial recognition abilities
- Cutting edge cyber threat exposure
- Health tracking and diagnostics
As the arrival of 6G inches closer and people become more familiar with its capabilities, more potential uses for it are likely to come up.
Which 6G Stocks Could Lead the Sector
Identifying the best 6G stocks to buy for your situation is almost impossible, but there are indicators that they could be largely similar to the best 5G stocks. The framework, along with the technological knowledge that assists them when it comes to standing out among 5G stocks could potentially give them an advantage when it comes to 6G.
Leading 6G stocks could potentially consist of enterprises that are proficient in AI and quantum computing. Founder and CEO of Mind Commerce, Gerry Christensen points out, “a systems approach for the 6G technology market. It will include data analytics, AI and next-generation computation capabilities using HPC and quantum computing.”
Some 6G stocks worth watching include:
1. Samsung
The digital connections powerhouse based in South Korea is moving fast. This is demonstrated by the fact that its 6G plans are already outlined and they’ve launched the Advanced Communications Research Center to speed up 6G R&D. Additionally, Samsung has chosen to accompany AT&T, NVIDIA, Qualcomm and InterDigital in their establishment of 6G@UT. This is an innovative research center focused on establishing the infrastructure for 6G networks.
2. Nokia
The longtime manufacturer of cellular devices abandoned the realm of handset production to focus on pioneering 6G technology. Nokia is a part of the Resilient and Intelligent Next-Generation Systems program (RINGS). It’s also leading Europe’s Hexa-X project. Hexa-X is a project bankrolled by the European Union’s Horizon 2020 research and innovation program that’s slated to last for 2.5 years.
3. Ericsson
There are numerous reasons why Ericsson is well-positioned to serve as a leader in the rollout and adoption of 6G technology. Ericsson is one of 9 industry participants in the RINGS initiative led by the US National Science Foundation that primarily concentrated on the development of cutting-edge technologies. Some of the other participants in the initiative include Apple, Google, IBM and Intel. Considering the strides that Ericsson has made in 5G technology, it’s no surprise that the company has a vested interest in maintaining its hold among 6G network stocks.
4. AT&T
The global communications behemoth that is AT&T has a clearly established vision for 6G. This is demonstrated by its recent participation in the Alliance for Telecommunications Industry Solutions (ATIS). Within ATIS, there’s an alliance consisting of Verizon, U.S. Cellular, T-Mobile and AT&T called the “Next G Alliance”. The mission of the Next G Alliance is to increase alignment for the North American technology industry on a concrete set of priorities capable of steering leadership for 6G and beyond.
Additional Ways to Invest in 6G Stock
There are a multitude of additional 6G stocks to consider aside from the major players. Some of them include Keysight Technologies, and Vodafone. Both have made strides that have the potential to make 6G stocks a highly intriguing space to watch. Given how new the space is, selecting the most attractive 6G stocks is easier said than done. Since that’s the case, investors may be interested in learning more about ETFs that provide access to a variety of 6G stocks. This practice allows investors to take part in the growing industry without facing too much exposure to risk.
As of this writing the following stocks mentioned are current holding of Defiance’s ETF, FIVG:
Ericsson, Nokia Corp, At&t Inc, Vmware Inc, Nvidia Corporation, Qualcomm Inc, Interdigital Inc, Apple Inc, Intel Corp, Verizon Communications Inc, T-mobile Us Inc, Keysight Technologies Inc, Vodafone Group Plc New.
Important Disclosures:
Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.
Go to defianceetfs.com/fivg to read more about FIVG including current performance and holdings information. Fund holdings are subject to change and should not be considered recommendations to buy or sell any securities.
The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. The Funds are not actively managed and would not sell a security due to current or projected under performance unless that security is removed from the Index or is required upon a reconstitution of the Index. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk. The value of stocks of information technology companies are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition.
The Funds are considered to be non-diversified, so they may invest more of its assets in the securities of a single issuer or a smaller number of issuers. In such event, the value of the Shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries. Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets. Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.
The possible applications of 5G technologies are only in the exploration stages, and the possibility of returns is uncertain and may not be realized in the near future. Companies across a wide variety of industries, primarily in the technology sector, are exploring the possible applications of 5G technologies. The extent of such technologies’ versatility has not yet been fully explored. Consequently, the Fund’s holdings may include equity securities of operating companies that focus on or have exposure to a wide variety of industries, and the economic fortunes of certain companies held by the Fund may not be significantly tied to such technologies. Currently, there are few public companies for which 5G technologies represent an attributable and significant revenue or profit stream, and such technologies may not ultimately have a material effect on the economic returns of companies in which the Fund invests.
The “BlueStar 5G Communications Index™”, “BFIVGTR™ Index” (collectively “5G Communications Index”), is the exclusive property and a trademark of BlueStar Global Investors LLC d/b/a BlueStar Indexes® and has been licensed for use for certain purposes by Defiance ETFs LLC. Products based on the Global 5G Communications Index* are not sponsored, endorsed, sold or promoted by BlueStar Global Investors, LLC or BlueStar Indexes®, and BlueStar Global Investors, LLC and BlueStar Indexes® makes no representation regarding the advisability of trading in such product(s).It is not possible to invest directly in an index.
The Defiance Next Gen Connectivity ETF is the first ETF to emphasize securities whose products and services are predominantly tied to the development of 5G networking and communication technologies. The fund does this by tracking The BlueStar 5G Communications Index. The Fund attempts to invest all, or substantially all, of its assets in the component securities that make up the Index.
Total return represents changes to the NAV and accounts for distributions from the fund.
Median 30 Day Spread is a calculation of Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.
Diversification does not ensure a profit nor protect against loss in a declining market.
Commissions may be charged on trades.
FIVG is distributed by Foreside Fund Services, LLC.
1 https://www.techtarget.com/searchnetworking/definition/6G
2 https://www.techtarget.com/searchnetworking/definition/6G
3 https://www.highspeedinternet.com/resources/6g-internet
4 https://www.techtarget.com/searchnetworking/definition/6G
5 https://news.samsung.com/global/samsungs-6g-white-paper-lays-out-the-companys-vision-for-the-next-generation-of-communications-technology
6 https://www.siasat.com/samsung-to-unleash-the-power-of-5g-bets-big-on-6g-tech-2153673/
7 https://www.fiercewireless.com/tech/at-t-t-mobile-verizon-others-form-alliance-for-6g-leadership
