Space in the 5G Race: Space-Based Networks are Helping Enable the Next Generation of Wireless Technology
The race among countries to deploy the fifth-generation of wireless technology (5G) is on. With its promises to provide instantaneous mobile downloads, accelerate massive growth of the Internet of Things, aid in robotic surgeries, and enable smarter autonomous vehicles, it’s easy to understand why countries are competing to be the leader in 5G. In addition to the technological breakthroughs, 5G is anticipated to offer socio-economic benefits including the creation of an estimated 3 million jobs in the US alone says Accenture’s Smart Cities report. The GSM Association’s The Mobile Economy 2019 report also predicts 5G to contribute $2.2 trillion to the global economy over the next 15 years.
In order to achieve its full capabilities, 5G will require the space industry, satellites in particular, to play an integral role. Unlike previous generations of mobile networks initially designed to operate autonomously, 5G has been developed from the start to integrate with space-based platforms made up of geostationary satellites, non-geostationary satellites and High-Altitude Platforms.
Satellites offer several advantages over terrestrial networks including wide coverage, mobility, costeffectiveness and greater resiliency from earth based physical attacks and natural disasters. Space technology will help make 5G available to remote and underserved communities, as well as moving platforms including trains, planes, and ships. The multicast/broadcasting functionality provided by satellites will also contribute to 5G use cases such as the connected car (passenger infotainment and car software updates).
The world’s first global pure‐play space ETF, the Procure Space ETF (TICKER: UFO), currently includes space-based companies poised to participate in, and potentially capitalize on, the 5G race. Global satellite operators and UFO constituents, Maxar Technologies, Intelsat and Telesat (owned by Loral Space & Communications) have committed to developing technology and working with industry influencers to establish protocols to integrate satellites into 5G networks. For a complete list of holdings in UFO, visit https://www.procureetfs.com/ufo#holdings. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.
As countries continue their quest for 5G dominance, space-based networks will be implemented progressively more within the 5G ecosystem. Satellite providers will be relied upon to deploy 5G coverage where terrestrial infrastructure is unavailable. When looking to position your portfolio to gain exposure to companies that may benefit from the potential 5G revolution, you may want to consider the impact satellite operators and manufacturers will have within the space. To learn more about UFO, the Procure Space ETF, visit: https://procureetfs.com/ufo
Disclosures:
Please consider the Funds investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before you invest.
Any investment product, strategy, or product design that is described on the Procure ETF’s website may not be suitable for all types of clients.
Investing involves risk. Principal loss is possible. The Fund is also subject to the following risks: Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Aerospace and defense companies can be significantly affected by government
aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new
entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies
that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. Securities of small- and mid-capitalization companies may
experience much more price volatility, greater spreads between their bid and ask prices and significantly lower trading volumes than securities issued by large, more established companies.
The Fund is not actively managed so it would not take defensive positions in declining markets unless such positions are reflected in the underlying index. Please refer to the summary prospectus
for a more detailed explanation of the Funds’ principal risks. It is not possible to invest in an index.
Any investment decision should be based on the individual circumstances of the beneficial owner.
Registration with the Securities Exchange Commission (“SEC”) does not imply a certain level of skill, training or endorsement by the SEC, Finra or other government regulatory authority.
UFO is distributed by Quasar Distributors LLC.