Telecom ETF

AAA

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 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.

RELATED TERMS
  1. ISP (Internet Service Provider)

    A company that provides consumers, businesses, and other Internet ...
  2. Communication Industry ETF

    An exchange-traded fund that invests in telecommunications companies ...
  3. Federal Communications Commission ...

    An independent U.S. government regulatory agency responsible ...
  4. Broadband

    A high-speed, high-capacity transmission medium that can carry ...
  5. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  6. Asymmetric Digital Subscriber Line ...

    A new technology that provides high transmission speeds for video ...
Related Articles
  1. Mutual Funds & ETFs

    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. Personal Finance

    How To Pick The Best Telecom Stocks

    This ever-changing industry can leave investors scratching their heads. Find out which metrics matter.
  3. Mutual Funds & ETFs

    Introduction To Exchange-Traded Funds

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

    Investing Strategies For The Millennial Generation

    Suggestions to build a long-term plan for the millennial generation, according to their needs and goals.
  5. Options & Futures

    A Detailed Look Into China's Options Market

    As the Chinese options market gradually takes shape, we provide an overview, including details of the initial phase and building blocks, primary beneficiaries, the impact on the overall financial ...
  6. Chart Advisor

    ChartAdvisor for January 30 2015

    A weekly technical summary of the major U.S. indexes.
  7. Chart Advisor

    Trade Strong U.S. Small Caps with this ETF

    While most investors focus on the Swiss franc, quantitative easing or other global economic indicators, small-cap stocks have been outperforming.
  8. Mutual Funds & ETFs

    What ETFs should I buy to track the utilities sector?

    Selecting utilities sector company stocks can be a challenge for investors, but utilizing an ETF that tracks a utilities index is a smart option for investors.
  9. Mutual Funds & ETFs

    What are the most common ETFs that track the forest products sector?

    Explore the most common exchange-traded funds that track the forest products sector. Review the performance, expense ratios and holdings of the two top ETFs.
  10. Mutual Funds & ETFs

    What are the most common ETFs that track the oil & gas drilling sector?

    Learn about three of the most common ETFs that track the oil and gas drilling sector: the XOP, the IEO and the PXE. Explore different ETF performance records.

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center