The chip producers mentioned at the start are all included in the brand-new Swissquote 5G Revolution Index. Together the trio make up a weighting of a little more than 15 per cent. In the broad-based barometer, however, there are many more companies that stand ready to profit from the new communications standard. The index comprises 20 members in all, with companies from the USA leading the way. These include the two communications equipment suppliers Ciena and Coring, for instance. The first of them has just completed a successful first quarter in April, coming in well ahead of expectations both in sales and in net profit. This led to a jump in the share price of more than one tenth to reach a new 11-year high. Cornig, which specialises in fibre-optic networks, likewise turned in a convincing performance at the start of the year, and its share price is currently heading towards its best mark of the previous year.
The Europeans too, though, have much to offer when it comes to 5G. The innovative Swissquote barometer includes the two Scandinavians, Ericsson and Nokia, for example. The latter completely realigned the group towards 5G at the end of the year, merging the mobile phone and landline business into a single unit on 1 January 2019. The Finns are already seeing plenty of orders as a result. Nokia won a major 5G contract worth 3.5 billion dollars from T-Mobile US, for instance. Nevertheless, orders remained below expectations at the start of the year. CEO Rajeev Suri expects to see a significant upturn in the second half of the year, though. Just before the end of the first half-year, the network equipment supplier secured an order from Saudi Arabia. That means Nokia now has 5G orders from a total of 43 suppliers around the world.
When it comes to the 5G future, there will be more than one winner. Many different companies from a wide range of industries will be able to take a slice of the billion-dollar cake for themselves. That means exploiting the opportunities of the new mobile phone standard through a diversified portfolio could well deliver rewards. With the 5G Revolution Index, the experts at Swissquote have done all the hard work for investors of looking for the top companies in this segment. The basket contains 20 international companies from a variety of sectors. The majority of those selected are technology groups, which account for a 64 per cent share. Almost a third are in the Financials segment. These include Digital Realty Trust, for instance, an American real estate fund that builds and operates data centres. The remaining almost three per cent come from the Telecommunications Services industry. The current selection is not set in stone, however: Swissquote subjects the index to regular review and adjusts it where appropriate.
Management fee: 0.70%
Index Sponsor: Swissquote Bank SA
Issuer: Leonteq Securities AG
To ensure that investors can profit from Swissquote’s sophisticated analytical process, Leonteq has issued a tracker certificate on the strategy index. The product got off to a good start: since being launched at a price of 100 US dollars at the beginning of May 2019, the participation security climbed more than eight per cent within the first two months. The tracker certificate tracks the performance of the underlying stock one to one, with only an annual management fee of 0.7 per cent being levied. The certificate also has an unlimited term, allowing it to take a long-term view of the investment background of the stocks.
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