This Blockchain ETF Has Been a Solid Performer in 2019

Most investors know about bitcoin’s rally in 2019. As expected, this has also had a positive impact on the price action for blockchain technology stocks.

These were all the rage in late 2017 and early 2018, but new research called into question just how useful the technology would be in the near term. Large financial institutions have thrown cold water on the idea that the tech can be “revolutionary” anytime soon.

The Horizons Blockchain Technology & Hardware Index ETF (TSX:BKCH) seeks to replicate the performance of the Solactive Blockchain Technology & Hardware Index. This tracks a portfolio of global companies that focus on blockchain innovation and development. It also focuses on companies that provide hardware and hardware-related services used in blockchain applications.

Some of the top holdings in the ETF include Lattice Semiconductor, an American manufacturer of high-performance programmable devices. Equinix boasts a 3.8% weighting.

This company specializes in internet connection and data centres. Another top holding is Digital Realty Trust, a real estate investment trust that invests in carrier-neutral data centres and provides colocation and peering services.

The ETF has climbed 22% in 2019 as of late afternoon trading on August 16. It offers nice diversification in a volatile space.

The hardware aspect is enticing, as these service providers are not as vulnerable to fluctuations in the price of cryptocurrencies. I like this ETF as a long-term buy-and-hold in August.