XLC - IYZ: Telecom Sector Is Interesting But Beware Of Concentration Risk
2024-01-24 12:09:36 ET
Summary
- Telecommunications have become the backbone of our society.
- iShares U.S. Telecommunications ETF has been a relative underperformer against the S&P 500 for years now, but the price ratio looks like it's bottoming.
- On the downside, the telecom sector is highly regulated and capital-intensive, which can impact the profitability of companies in this space.
In today's digital age, telecommunications have become the backbone of our society, enabling us to stay connected and informed. Therefore, it's no surprise that the telecom sector is a vital part of the global economy. For investors seeking to capitalize on this industry's growth, the iShares U.S. Telecommunications ETF ( IYZ ) might be worth a look. The exchange-traded fund, or ETF, has been a relative underperformer against the SPDR® S&P 500 ETF Trust ( SPY ) for years now, but the price ratio looks like it's bottoming, which in turn could result in a secular period of leadership ahead....
IYZ: Telecom Sector Is Interesting, But Beware Of Concentration Risk