Investopedia

Continue to Site »

Telecom ETF

Filed Under »
Dictionary Says

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".
Investopedia Says

Investopedia explains '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.

Articles Of Interest

  1.

    4 Ways To Use ETFs In Your Portfolio

    To take full advantage of these vehicles, you need to know how they can fulfill certain strategies.

  2. How To Pick The Best Telecom Stocks

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

  3. Introduction To Exchange-Traded Funds

    Get into ETFs and enjoy the benefits of a mutual fund with the flexibility of a stock.

  4. Multi-Asset Funds Or Your Own Mix?

    The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own.

  5. The Best ETFs For Your 401k

    ETFs can be a good alternative to traditional retirement fund options because of their low cost, superior performance and liquidity.

  6. Why You Should Invest In Municipal Bond ETFs

    These versatile instruments have become popular with investors in higher tax brackets and fill a specific niche in the wide selection of fixed-income offerings.

  7. The Best Way To Buy Silver

    Discover whether ETFs or physical bullion is the best way for investors to get exposure to silver.

  8. Home Sales Hit Fastest Pace In Three Years

    The pace of home sales hit a three-year high in February, a sign the economy is definitely on the mend. Homebuilder stocks have had a huge run the past year. I'll look at how to play what seems ...

  9. The Truth Behind Tactical ETF Investing

    Are tactical ETFs reasonable and effective investment strategies or just plain speculative behavior?

  10. Introduction To Blackrock ETFs

    Blackrock's line of offerings can provide liquidity, diversity and transparency for both sophisticated and novice buyers.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center