Exponential Tech: Changing the World?
10/28/2016 9:00 am EST
While the doom-and-gloom crowd obsesses over dysfunctional politics, a new generation of hyper-optimists are focused on developing the next generation of companies set to change the world, insists Nicholas Vardy, editor of The Alpha Investor Letter.
This change represents an opportunity for savvy investors who can bet on the right technology and the right horse.
At the same time, it also poses a unique challenge for average investors who are
unable to keep up with the exponential rate of change.
I believe that the iShares Exponential Technologies ETF (XT) is the single-best-diversified play on the theme of exponential investing you will find in the public markets today.
It allows you to profit from the bevy of paradigm-shifting changes taking place, without being overwhelmed by all the confusing and sometimes contradictory trends.
Specifically, XT invests in companies from developed and emerging market countries that create or use exponential technologies as defined by the Morningstar Exponential Technologies Index.
The Morningstar Exponential Technologies Index tracks nine areas consist of 3D printing, Big Data and analytics, Bio-informatics, Energy and environmental systems, Financial services innovation, Medicine and Neuroscience, Nanotechnology, Networks and computer systems and Robotics.
Before the arrival of XT on the investment scene, if you wanted to play exponential investing, you needed to invest in a particular company or make a thematic bet.
XT, however, offers broad diversification, providing investors access to cutting-edge exponential technologies, from big data analytics to virtual reality to social media.
By Nicholas Vardy, Editor of The Alpha Investor Letter