The power of
the internet

 
Internet

20th Oct | 10 mins

Speed read

  • Catalyst for all major change in the 21st century
  • Internet stands as the foundation on which further innovation develops
  • Robotics, AI, IoT, 5G dependent on Internet while simultaneously enhancing its offering

The internet is a behemoth. You may have heard of it. You may have used it a few times. You almost certainly let it help control almost every part of your daily life. When talking about innovation, it doesn’t come much bigger.

As well as being privy to everything, its strength and breadth is starting to be found everywhere. The catalyst for what has become crucial to our everyday lives began as a series of computers across a network, ARPANET, at the US Department of Defence. This became a traditional network, as we know it, in 1983 before Tim Berners-Lee invented the world wide web in 1990. The development from this point onwards would have been almost unfathomable.

When considering all that has been built on the foundations of the internet, it is astonishing to think that it has only been around in its mainstream format for 30 years. Only now are we beginning to explore its full potential.

Influence everywhere

Quickly passing beyond its initial phase of simply accessing data, it is now at the forefront of almost all technological breakthroughs, standing as a building block for innovation. To ignore the power of this would be to ignore the potential still waiting to flourish in the 21st century.

For investments and the financial world alone, it has almost single-handedly revolutionised the approach for retail investors by enabling them to find financial literature, reports, stock information and more, the moment that it is updated online. Not only has it impacted society’s access to financial markets, but also the cost that they incur to do so. Trading has benefitted from the speed at which transactions can now be verified, while improving transparency in the industry.

Analysing and harnessing the performance of the internet in thematic investment funds over the last 10 years, First Trust truly belief that its full power is yet to be realised. We believe there is a bright future for investors in the transformative power of this extraordinary technological innovation.

Benefiting from internet diversity

Investing in thematic ETFs allows investors to get exposure to all the advantages, progress and potential of an innovation such as the internet, without relying solely on the performance of any one company or industry. A thematic ETF offers the ability to diversify investors’ exposure to common topics and elements driven by or harnessing the development and performance of the internet.

One of the largest developing subsections includes the Internet of Things (IoT) – a prime example of how the power of the internet penetrates all industries. Households will benefit by allowing multiple devices – such as smart meters – to transmit data readings to suppliers and allow them to anticipate customer needs, growing costs and many more computations. Manufacturing can improve the efficiency of supply chains through automation between inventory and production stages, while governments can benefit from a data-driven understanding of transport needs.

Robotics, artificial intelligence, automated vehicles, IoT, cloud storage, 5G, cyber security, 3D printing, surgical robots and hundreds more are all developing their own space within this theme, thanks to the capabilities of the internet. These technical developments are continuous – similar to the ways in which humans adapt to bring technology like this further into their work and personal lives.


Learn more about the process of investing in thematic ideas and discover some of the current trends in our available resources.



Any references to specific companies should not be construed as a recommendation to buy or sell any securities in said companies, nor assumed to be profitable.



“The first Industrial Revolution brought us an unprecedented level of innovation, fundamentally changing the world. The potential power of the Internet is unlimited, positioned at the forefront of the third Industrial Revolution: the digital age.”

"MAJOR DISTURBANCES AND UNUSUAL OCCURANCES" ON US GRID
2000 to 2021

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