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.

RELATED TERMS
  1. Communication Industry ETF

    An exchange-traded fund that invests in telecommunications companies ...
  2. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  3. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  4. Services Sector ETF

    Exchange-traded funds (ETFs) that invest in either the consumer ...
  5. Inverse ETF

    An exchange-traded fund (ETF) that is constructed by using various ...
  6. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently ...
Related Articles
  1. Investing

    Telecom ETFs to Date 2016 Performance Review (FCOM, VOX)

    Pay attention to recent price performance when considering a telecom sector ETF. While some telecom ETFs provide strong returns, others are currently weak.
  2. Investing

    IXP: iShares Global Telecom ETF

    Learn about the iShares Global Telecom exchange-traded fund, which invests in U.S. and foreign telecommunication companies with high dividend yields.
  3. Investing

    The Top 5 Telecommunication ETFs for 2016 (VOX, IYZ)

    Learn how you can gain exposure to American and global telecom stocks through five of the top telecommunications ETFs on the market.
  4. Investing

    The 5 Largest Telecom ETFs (VOX, IYZ)

    Explore the five largest telecommunications sector ETFs, as measured by assets under management. Learn the tracking indexes, trading volumes and yields of these ETFs.
  5. Investing

    The Top 3 ETFs That Hold T-Mobile Stock (TMUS, IYZ)

    Obtain information about some of the exchange-traded funds in the telecom sector that have the highest percentage of portfolio allocation to T-Mobile stock.
  6. Investing

    ETF Flows: 2 Telecom ETFs Winning Assets (VOX, FCOM)

    Learn how the telecommunications sector has outperformed the market year to date and how investors are reaping the rewards through these 2 ETFs.
  7. Investing

    IXP Vs. VOX: Comparing Telecom ETFs

    Explore exchange-traded funds administered and managed by Vanguard and iShares that invest in stocks of various telecommunication companies.
  8. Investing

    Telecom ETF (IYZ) vs. Mutual Fund (VTCAX) Case Study

    Compare a popular telecommunications industry exchange-traded fund (ETF) to a similar mutual fund, and see which one comes out on top in the final analysis.
  9. Investing

    The Debt Report: The Telecom Sector

    Discover how America's telecommunications providers have been piling on debt since the Great Recession, and how part of the sector seems vulnerable.
  10. Investing

    How To Pick The Best Telecom Stocks

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

    Read about some of the risks associated with investing in telecommunication stocks, including several that are specific to ... Read Answer >>
  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 >>
  6. How does the risk of investing in the telecommunications sector compare to the broader ...

    Learn how the telecommunications sector exhibits greater risk than the broader market and how investors use this information ... Read Answer >>
Hot Definitions
  1. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  2. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  3. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  4. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  5. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  6. Four Percent Rule

    A rule of thumb used to determine the amount of funds to withdraw from a retirement account each year. The four percent rule ...
Trading Center