411 On 3 Top Performing Telecommunication ETFs- VOX, VGT, IYZ

| March 14, 2014 | 0 Comments

smartphonesThere’s no denying that most people cannot live without their cell phone. Over the last decade, we have become dependent on the smartphone to keep us connected. Payphones and landlines have become a thing of the past.

What does that mean for your investment portfolio? The increase in demand for wireless service has made investing in telecommunication a wise choice.

Let’s take a look at three of the top performing telecommunication ETFs.

Vanguard Telecom Services ETF (VOX)

VOX is one of the top performing telecommunication ETFs over the past five years, making it a wise choice for long term investing. It has a current price of $81.33 and shows steady returns of 145% on a 5-year term.

The index consists of stocks of large, medium, and small U.S. companies in the telecommunication services sector. It currently has 34 holdings. Its top holdings include Verizon (VZ), AT&T (T), and Century Link (CTL). 

But what’s more important is its annual dividend yield of 3.97% and low expense ratio of 0.14%. High dividend payouts are common with telecom ETFs making them enticing to investors.

iShares U.S. Telecommunication (IYZ)

IYZ is another top performing telecommunication ETF with a current price of $28.87; it has a 1-year return of 23.35%. It has an even stronger return on its 5-year return at 138.33%!

This ETF measures the performance of the telecommunications sector of the U.S. Equity market, including fixed-line communications and wireless communications.

IYZ holds 26 stocks and has an expense ratio of 0.48%. It has a dividend yield of 2.67%.

Its top performers include companies such as AT&T (T), with an 11.67% return YTD and Verizon, which is also showing a positive return at 11.05% YTD.

Vanguard Information Technology ETF (VGT)

VGT isn’t a true telecom ETF but does have plenty of key players involved in the cutting edge technology being used in the telecom industry. 

For example, its top performer, Apple (AAPL), is up 12.47% over the year. It also has Qualcomm (QCOM), which is showing steady gains of 3.49% YTD.

This ETF is clearly driven by the wireless market and its increase in demand for service including new hardware and infrastructure. Cell phone users are demanding faster services, such as 4G, and this is increasing telecom businesses to turn a hefty profit.

VGT is showing great long-term gains.  At a current price of $90.64, it has a return of 15.15% over the last 26 weeks and an astounding 206.85% over the last five years!

Like most Vanguard ETFs, VGT also has a low expense ratio of 0.14% and it has a solid dividend payout of 1.02%.

This ETF holds 415 stocks and consists of large, medium, and small U.S. companies. This ETF also includes companies in software and services, manufacturing of hardware and equipments, and companies that provide technology consulting.

Here’s the lowdown…

Telecommunication ETFs are good choices for long term investing because of the demand for wireless services. ETFs such as VOX, VGT, and IYZ that hold some of the most successful wireless companies will continue to show positive gains in the market.

Good Investing,

Corey Williams

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Category: ETFs, Sector ETFs

About the Author ()

Corey Williams is the editor of Sector ETF Trader, an investment advisory service focused on profiting from ETFs and the economic cycle. Under Corey’s leadership, the Sector ETF Trader has become one of the most popular and successful ETF advisories around. In addition to his groundbreaking service, Corey is the lead contributor to ETF Trading Research, where he shares his insights about ETFs and financial markets three times a week. He’s also a regular contributor to the Dynamic Wealth Report and the editor of one the hottest option trading services around – Elite Option Trader.

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