Banking stocks have been on many investors’ minds lately, so it is likely that telecommunication stocks and the exchange traded funds (ETFs) that hold them have been on the back burner. Both the telecommunications and the mobile phone sub-sector have fared well, with stocks ringing to the upside. Haven’t you noticed that everyone is on the phone these days?
Michael Kahn for Barron’s says that conditions for the leading stocks within the telecommunications and wireless providers, such as Verizon (VZ) and AT&T (T), are ripe, especially with the iPhone’s popularity. Some ETFs that hold telecommunications stocks and their performance year-to-date are:
- Merill Lynch Wireless HOLDRs (WMH) – up 22.7%
- Merill Lynch Telecom HOLDRs (TTH) – up 16.7%
- iShares Dow Jones U.S. Telecommunications (IYZ) – up 14.5%
- Vanguard Telecommunication Services ETF (VOX) – up 12.4%
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.