This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ETFs Dial In for Smartphone Growth

NEW YORK ( TheStreet) - There are a variety of different ways ETF investors to gain access to the forecasted growth of the smartphone industry.

The current handheld devices offered by companies such as Research in Motion (RIMM), Apple (AAPL) and Motorola (MOT) bear little resemblance to the cell phones of the past.

Whereas these gadgets were once used to mainly stay in contact with friends and loved ones through phone calls and texts, consumers are increasingly turning to their iPhones, Droids, and Blackberry devices to connect with the world around them, surf the Internet, play games, check email, and keep a constant eye on work.

Given the diverse capabilities of today's smartphones and our increasing desire to stay constantly connected with the world, it is no wonder that demand for these gadgets is strong and only expected to increase.

In a report for Fortune, reporter Seth Weintraub predicts that there is a chance that we will see half a billion phones sold around the world in 2011. Further, the author predicts that smartphones will surpass traditional computers next year as the No. 1 way consumers connect to the Internet.

Rampant growth in this sector will bode well for companies such as RIM, Google (GOOG), Apple, and Motorola. Additionally, wireless service providers such as Verizon (VZ) and AT&T (T) should benefit as more consumers abandon their landlines in favor of more expensive data plans.

Finally, the companies responsible for producing the internal components of these products look primed for growth as well.

The body of companies which will benefit as the smartphone revolution takes hold is vast. Therefore, rather than viewing the industry through a stock picking perspective, investors may find a diversified ETF the best suited product for taking on the sector as a whole.

The iShares S&P North American Technology-Multimedia Networking Index Fund (IGN) tracks a basket of over 30 different companies. Among the fund's components lays a bevy of technology-related firms which have become household names in the smartphone industry. Some of the companies headlining the fund's index are names such as RIM, Motorola, Cisco (CSCO - Get Report) and Qualcomm (QCOM).
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IGN $35.89 -1.21%
EWT $13.20 -2.55%
CSCO $27.96 -2.37%
TSM $24.15 -4.40%
AAPL $95.03 -2.90%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs