Communication Industry ETF

AAA

DEFINITION of 'Communication Industry ETF'

An exchange-traded fund that invests in telecommunications companies with the objective of replicating the performance of an underlying telecom index. Communication industry ETFs include giant integrated providers of wireless and wire line services, as well as smaller companies that specialize in wireless services or manufacture communications equipment.

INVESTOPEDIA EXPLAINS 'Communication Industry ETF'

The defensive characteristics of telecom companies, such as their high dividend yields and relatively stable cash flows, are well known. As a result, an ETF based on telecoms will be less volatile than the broad market and will tend to outperform during turbulent economic times. On the downside, communication industry ETFs are likely to be laggards in a bullish market.


These ETFs generally fall under the umbrella of telecom ETFs.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Semiconductor Industry ETF

    A sector-following fund that invests in developers, manufacturers ...
  3. Business Software & Services Industry ...

    An exchange-traded fund (ETF) that invests in business software ...
  4. Telecom ETF

    An exchange-traded fund that invests in companies with a significant ...
  5. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  6. Defensive Stock

    A stock that provides a constant dividend and stable earnings ...
Related Articles
  1. The creation and redemption process for ETF shares is almost the exact opposite of that for mutual fund shares.
    Mutual Funds & ETFs

    An Inside Look At ETF Construction

    If you're an investor who likes to understand how and why your investment products work, this article is for you!
  2. Mutual Funds & ETFs

    Spread Out Risk With Sector-Based ETFs

    These ETFs take the sector rotation strategy from institutional investors and puts it in your hands.
  3. Personal Finance

    How To Pick The Best Telecom Stocks

    This ever-changing industry can leave investors scratching their heads. Find out which metrics matter.
  4. Chart Advisor

    Profit From Holiday Spending With This ETF

    As Americans finish purchasing the last of their holiday gifts, the consumer discretionary sector will continue to be one of the primary beneficiaries.
  5. Investing in emerging market bonds might sound creative and fun, but sometimes it’s more profitable in keeping it simple and close to home.
    Mutual Funds & ETFs

    The EMB Emerging Market Bond ETF: Use Caution

    Investing in emerging market bonds might sound creative and fun, but sometimes it’s more profitable in keeping it simple and close to home.
  6. Get Rich Slowly found about the insights on investing from about 2,000 selected individuals by an online survey. Do they have an investing strategy?
    Investing Basics

    Do You Have An Investing Strategy?

    Get Rich Slowly found about the insights on investing from about 2,000 selected individuals by an online survey. Do they have an investing strategy?
  7. The Vanguard S&P 500 ETF (VOO) offers a relatively safe investment opportunity for people who aren't sure which way the market is headed.
    Mutual Funds & ETFs

    Will Stock Market VOOdo Continue?

    The Vanguard S&P 500 ETF (VOO) offers a relatively safe investment opportunity for people who aren't sure which way the market is headed.
  8. Chart Advisor

    Cocoa Prices Setting Up For A Move Lower

    Cocoa prices have been trending lower over the past several months and the recent bearish crossover between the 50-day and 200-day moving averages suggest that the long-term downtrend is gaining ...
  9. VelocityShares 3x Long Crude Oil ETN has the potential for huge returns, but there are several reasons why you might want to steer clear for now.
    Mutual Funds & ETFs

    A Leveraged Oil ETN For The Future (Just Not Now)

    VelocityShares 3x Long Crude Oil ETN has the potential for huge returns, but there are several reasons why you might want to steer clear for now.
  10. Latin American exchange-traded funds combined two of the hottest buzzwords of recent years: Emerging markets and low fees. Here are the biggest.
    Mutual Funds & ETFs

    Want To Invest In Latin America? Here are 22 ETFs

    Latin American exchange-traded funds combined two of the hottest buzzwords of recent years: Emerging markets and low fees. Here are the biggest.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center