- FCOM and XLC are two Communication Services ETFs that seemingly share many similarities but have a surprisingly different performance track record.
- Investors may be surprised to learn that the much smaller FCOM has bested XLC by nearly 3% per year since its October 2013 launch. Fees are cheap too at 0.08%.
- One reason is that FCOM overweights Alphabet and underweights Meta Platforms, now trading at just 15x forward earnings. XLC is arguably the better value ETF.
- Still, I can't ignore how well some of FCOM's small- and mid-cap stocks have held up during this downturn. Revenue surprises were better last quarter, and I think the more diversified ETF will continue to outperform.
- This article also lists five other Communication Services sector ETFs worth considering.
For further details see:
FCOM Trumps XLC In This Communication Services ETF Battle