With 5G-supported Augmented Reality, the Future Has Arrived

Globally, the long-awaited advent of 5G is finally beginning to materialize. The 5G network currently has over half a billion subscribers, mainly within the North East Asian area. By 2026, that figure could potentially reach 3.4 billion. The main catalyst would be the continued roll out in North American and Western European markets, along with the growth of the North East Asian market.

The shift from 4G to 5G for cellular communications itself has the potential to make 5G stocks an intriguing investment. We may expect many customers and businesses to upgrade to the most up-to-date mobile devices. Additionally, some of the top 5G companies to invest in continue to pursue innovation as 5G technology becomes more widespread. Ultimately, the most promising opportunities for growth exist within the capabilities that 5G could unveil.

Augmented Reality meets 5G 

Augmented reality (AR) combines digital virtual reality with the actual 3-D world. Currently, augmented reality is typically viewed on a mobile device like a smartphone or tablet. It works by displaying a digital image over the object the camera is aimed at, right in front of you. Still, there’s no actual rationale behind limiting augmented realities to screens. Smart glasses, along with additional types of wearables have already been developed. They free users’ hands, allowing them to immerse themselves within augmented photos. While technology develops beyond screens, sensory input like sound and texture will be implemented into everyday life more often, allowing for a more involved experience.

For years, augmented reality was considered a novelty as opposed to a disruptive technological breakthrough. This is partially due to the fact that networks lacked the maturity to host AR applications alone. They lacked the power to provide the low latency and increased bandwidth in order to provide a seamless AR experience. However, circumstances are beginning to change. In the United States, the 5G rollout has seen the Federal Communications Commission (FCC) release the mmWave spectrum and supports the development of Open RAN. 

China also seeks to dramatically ramp up its coverage. The Ministry of Industry and Technology’s 2021-23 action plan is geared towards taking 5G user penetration to 40%, and large enterprise penetration to 35%. 

Augmented Reality Has Already Arrived

One of the best use cases for augmented reality within the Western hemisphere is the 2016 success of the Pokemon Go mobile app. The app allowed players to capture Pokemon in their communities while looking at their surroundings on their mobile devices. 

Actually, Pokemon Go wasn’t even the first game to use AR. Hado was released in 2014. Hado is played on a court, where three-player teams with head-mounted displays and armband sensors duel by launching energy balls at opponents while using shields to ward off attacks. That AR game is now played in 37 nations globally, and has only recently made its arrival to the United States. Viewers can watch live streams of players indulging in the game online, too. 

In 2021, IKEA launched a newer edition of Place called IKEA Studio. It allows users to design entire living spades directly from their iPhone. They can make design changes that include changing the wall color to adding digital objects like lamps. Among the pitfalls is that Place and Studio both lack connectivity to the IKEA website. That means users need to leave the app prior to placing their orders, but integration is being constructed as we speak.

Heavy industries are in the process of constructing AR applications for themselves, too. Branding itself as the “Netflix” of extended reality applications, Holo-Light has already come out with a few products that are geared to help designers and engineers.

Engineers can conceptualize and play with 3D CAD data using their AR3S engineering space. This particular engineering space adds a more realistic feel to prototyping and planning thanks to its mixed reality environment. They can also use it to work together on designs projected into real-world settings while out of the office. Their Stylus AR works hand-in-hand with AR3S to let engineers sketch and make annotations that teammates can later access in situ.

Everywhere you look, companies are seeking to save time, along with other valuable resources by reducing travel. AR is here to fill in the gap. It does so by allowing for easy collaboration, even across massive geographical boundaries. For instance, Arvizio has created an extended reality software platform. That platform is capable of supporting collaborative working by allowing attendees to join sessions with smartphones, smart glasses or headsets.

The opportunities don’t end there, either. From academia to the supply chain, augmented reality has the potential to enhance the way people learn, live and communicate.

5G is Both the Present and the Future

As tantalizing as augmented reality is, it’s just one aspect of the transformative technologies that are now possible due to the introduction of 5G. 5G offers a massive uptick in bandwidth, in conjunction with the precision offered by short wave transmission on the mmWave spectrum. This makes automated technologies as a regular part of our daily lives a real possibility. 

Leading investor Louis Navallier expressed 5G confidence when he said, “If I had to put every penny of my life savings into one sector right now, 5G would be it.” Even if you aren’t as gung-ho on 5G technology as Navallier, there are likely numerous appealing 5G network stocks worth investing in. A decision to invest in 5G stock could potentially serve as a prime investment opportunity. 

When it comes to determining which stocks are the best 5G stocks to buy, there are numerous factors that should be taken into consideration. Those factors may include potential risk, budget, or other current investments you’ve been considering. That’s why people deciding whether or not to invest in 5G stock will benefit from exploring all of their options before buying 5G network stocks. 

One way to gain exposure to 5G network stocks is via exchange traded funds or ETFs. ETFs cover a vast array of 5G network stocks that provide diverse and balanced exposure to this landscape-shifting technology.

For current performance and holdings, please visit defianceetfs.com/FIVG

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.

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. 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.

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.

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Diversification does not ensure a profit nor protect against loss in a declining market.

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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.

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