Telecom companies are asking exchange traded funds (ETFs), "can you hear me know?" Big European telecom companies are moving on news of mergers and higher dividend payments reports Trang Ho of Investor’s Business Daily. This news can have some affect on U.S. listed ETFs.
WisdomTree International Communications Index (DGG) holds companies from 20 different countries, with the U.K. and France holding the top spots. The largest holdings are Vodafone (VOD) at 9.6% and France Telecom (FTE) at 9.4%. DGG is up 11% year-to-date. Also ringing is iShares S&P Global Telecom (IXP) up 12% year-to-date. It is 35% U.S. and 65% foreign. The U.K. and Spain represent the top two largest foreign exposure. AT&T (T) makes up 18% of the ETF followed by Vodafone at 10.3%.
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