Telecom ETF

DEFINITION of 'Telecom ETF'

An exchange-traded fund that invests in companies with a significant stake in telephone and internet products, services and technologies. There are many different flavors of telecom ETFs, each of which focuses on a different aspect of the telecommunications industry. International telecom ETFs invest in top telecommunications companies from countries around the world. Telecom services ETFs invest in companies that provide phone and internet service. Other telecom ETFs do not focus on a single aspect of the telecommunications sector but track the sector as a whole.

Also know as "communications industry ETF".

BREAKING DOWN 'Telecom ETF'

In one respect, telecom ETFs do not offer investors much in the way of diversification and risk mitigation because they are concentrated on a single industry; on the other hand, they do offer diversification and risk mitigation because they allow investors to invest in a basket of telecommunications companies. As a result, telecom ETFs can be less risky than buying a single company's stock.

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RELATED FAQS
  1. What ETFs can I buy that track the telecommunication sector?

    Get information about some of the most popular and highly traded ETFs that investors use to track the telecommunications ... Read Answer >>
  2. Why should an investor include an allocation to the telecommunications sector in ...

    Learn the benefits available to investors if they choose the option to include allocations to the telecommunications sector ... Read Answer >>
  3. What are the risks associated with investing in telecommunication stocks

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  4. What are the main factors that affect stocks in the telecommunications sector?

    Read about the factors that drive share prices in the stock market, and learn some of the trends in the telecommunications ... Read Answer >>
  5. What portion of the global economy is comprised of the telecommunications sector?

    Explore the telecommunications industry in regard to worldwide growth, and learn what percentage of the global economy the ... Read Answer >>
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