Telecommunication exchange traded funds (ETFs) are trending upward lately. One factor in the increase could be that the demand for mobile phones has skyrocketed in heavily-populated countries such as India and China. In fact, cell phone maker Nokia just declared it expects India to overtake the U.S. as its second biggest sales market after China by 2010, BBC News reports.
Nokia (NOK) also just announced that it has created an online music service intended to compete with Apple’s (AAPL) iTunes, says Carl Delfeld for ETF XRAY. Nokia also happens to be the seventh largest holding in the WisdomTree International Communications ETF (DGG) at 4.1%. DGG is up 8.9% year-to-date. Similarly, other telecommunication ETFs are up year-to-date:
- iShares Dow Jones U.S. Telecom (IYZ) – up 10.3%
- iShares S&P Global Telecommunications (IXP) – up 10.7%
- PowerShares Dynamic Telecom & Wireless (PTE) – up 5.7%
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.