The telecom exchange traded funds (ETFs) were ringing but nobody was there! Rumors that Vodafone (VOD), the world’s largest wireless-network firm, wanted to buy Verizon Communications (VZ) for $160 billion were deemed false says Trang Ho for Investor’s Business Daily. The news helped lift telecom ETFs to new highs, which have returned double-digit gains this year. Some of the telecom ETFs include:
- Telecom HOLDRs (TTH) – up 14.5% year-to-date and VZ makes up 22%
- Wireless HOLDRs (WMH) – up 19.5%, while VZ makes up 10% of the ETF
- Vanguard Telecommunication Services (VOX) – up 15.5% with 18% in VZ
- PowerShares Dynamic Telecommunications and Wireless (PTE) – up 12.8% and holds 5% VZ
- WisdomTree International Communications (DGG) – up 16.2%; no VZ, but 15.5% VOD
- iShares S&P Global Telecommunications (IXP) – up 16.4% with 8% VZ and 12% VOD
- iShares DJ U.S. Telecom (IYZ) – up 19.3% with 14.3% in VZ
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.