With all the acronyms used in the software industry these days, it can sometimes feel like people are speaking in code. You're probably familiar with "AI," short for Artificial Intelligence. After all, this is a $136 billion market â and growing fast. But few investors likely follow a field known as "DevOps," short for Development [â¦] You're receiving this email as part of your subscription to Michael Robinsonâs Trend Trader Daily [Unsubscribe](. [Trend Trader Daily] This Fund Is Up 20% in the Past Six Months April 21, 2023 With all the acronyms used in the software industry these days, it can sometimes feel like people are speaking in code. You're probably familiar with "AI," short for Artificial Intelligence. After all, this is a $136 billion market â and growing fast. But few investors likely follow a field known as "DevOps," short for Development Operations. This term refers to methods for helping companies automate software development and represents a $50 billion market. "APIs," short for Application Program Interfaces often found in mobile apps, is another unfamiliar term. And let's not forget "IaC," short for Infrastructure as Code â basically software used to manage such areas as networks, computer services, and databases. I don't bring all these acronyms up to make your head spin. I just want to show you how much is going on within the $650 billion global software market⦠And reveal how we can capture a piece of it for ourselves. > ADVERTISEMENT < 50,000-Year Old âAlien Mineralâ Could be the Key to $7 Trillion Market This seemingly worthless lump of black rocks could potentially transform a $7 trillion market... And one tiny company could be your No. 1 way to profit from it. [Click here now for the full story on this potentially explosive situation](. These Companies Do the Heavy Lifting Areas like e-commerce and cloud computing get a lot of attention, if for no other reason than that companies like Google (GOOGL) and Amazon (AMZN) are household names, not to mention absolute giants. And with the recent passage of the $53 billion Chips Act, semiconductor firms like Intel (INTC) are making headlines, too. But behind the scenes, it's software companies that are doing the heavy lifting. Every data center, online video device, digital music platform, Internet browser, "connected" car, and personal computer runs on software. What I like about software from an investment standpoint is that it's a high-margin business. You see, gone are the days when software was delivered in boxes containing compact discs that had to be shipped directly to retail stores or to end users. Today, nearly all software is either installed on devices like cars or tablets or delivered via the cloud. Simply put, software is a target-rich environment. But in today's choppy market, that can be overwhelming to investors hoping to back the correct stock. That's why I'm focused on a fund that enables us to cover the waterfront of software's continued growth. Inside the Fund This exchange-traded fund ("ETF") holds dozens of stocks, including an interesting blend of stable large-caps like Microsoft (MSFT) and Oracle (ORCL) and smaller firms whose stocks may be volatile for retail investors. These are companies like: - Ansys (ANSS), an engineering simulation and software company that's the space traffic cop of the 21st century. You see, since the Soviet Union launched Sputnik 1 in 1957, humans have put almost 10,000 artificial satellites in space. And while space is huge, the amount of usable space for satellites in Earth's orbit is limited â and increasingly congested. That makes Ansys, which owns a leading tracker and forecaster of satellite and space debris orbits, more important than ever.
- Palantir Technologies (PLTR) is a small-cap pioneer in AI-driven software and solutions with a strong hook in government contracts. Offerings from this savvy growth firm cover a range of applications and sectors â everything from defense to intelligence to telecommunications.
- Splunk (SPLK). This company is a great play on the hot trend of big data and is focused on data analytics generated by "machines." That's a loose term that covers the Web, computer servers, networks, mobile devices, and the billions of sensors in use around the world.
- Cadence Design Systems (CDNS) is a great double-play. The firm is a leader in providing software for the booming semiconductor industry. Founded in 1988, the Silicon Valley company has granted software licenses to roughly 200 firms and counts seven of the top 10 semiconductor makers as clients. Covering a Lot of Ground Add it up, and this ETF covers a lot of ground in a single, cost-effective investment. It also has a history of beating the market. Over the past five years, the S&P 500 has returned 53% gains. By comparison, this ETF has recorded gains of 66%, beating the market by nearly 25% over the same time. This fund enables you to ignore the market's ups and downs as you steadily build your net worth. I've saved the name of this fund for my "Pro" readers, so make sure you're one of them. â FOR TREND TRADER PRO READERS ONLY
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Michael Robinson
Chief Investment Officer
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