What is a REIT and why are tower REITs included in this portfolio?

A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-generating real estate. Tower REITs like Crown Castle (CCI) and American Tower (AMT) own and manage the physical cell towers that wireless carriers need to provide service. These are included in the portfolio because they own essential physical infrastructure for connectivity and typically generate steady income through long-term leases to telecommunications companies.

What is 5G and why is it important for these companies?

5G is the fifth generation of cellular network technology, providing significantly faster speeds, lower latency, and greater capacity than previous generations. It's important for companies in this portfolio because it represents a massive, multi-year infrastructure upgrade cycle. Tower companies benefit from new equipment installations, networking companies provide the hardware to handle increased data flow, and component manufacturers supply the critical parts needed for this technology. The 5G rollout creates sustained demand for the products and services these companies provide.

What's the difference between satellite internet and traditional connectivity?

Traditional connectivity relies on physical infrastructure like fiber optic cables and cellular towers to transmit data. Satellite internet beams signals from orbiting satellites directly to receivers on Earth. The key advantage of satellite internet is coverage – it can reach remote, rural, and developing areas where laying cables or building towers isn't feasible. Companies like Viasat (VSAT) and Iridium (IRDM) in this portfolio are building these orbital networks to expand global connectivity.

What is the Internet of Things (IoT) and how does it relate to this portfolio?

The Internet of Things refers to the network of physical objects embedded with sensors, software, and connectivity that enables them to connect and exchange data with other devices over the internet. This portfolio includes companies like Impinj (PI) and Samsara (IOT) that create the technologies enabling this connectivity – from RFID tags that track inventory to sensors that monitor industrial equipment. As more devices become connected (from cars to factory machines to home appliances), these IoT enablers benefit from growing demand for their connectivity solutions.

What does "Market Cap" mean in the stock data?

Market capitalization (or "market cap") represents the total value of a company's outstanding shares. It's calculated by multiplying the current share price by the total number of shares. Market cap indicates the company's size – generally categorized as large-cap (over $10 billion), mid-cap ($2-10 billion), or small-cap ($300 million-$2 billion). In this portfolio, you'll find a mix of market caps, from established networking giants to smaller, specialized component manufacturers.

16 handpicked stocks

Network & Connectivity Portfolio

Invest in the companies building the physical and digital highways of our connected world. As our appetite for data explodes, these carefully selected stocks offer exposure to the essential infrastructure powering our digital future.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17