The ETF’s top two holdings are AT&T (NYSE: T) and Verizon (NYSE: VZ) and together they comprise nearly 30% of the fund. There are 28 stocks in the portfolio.
“Major telecommunications firms’ prospects remain solid. Demand for smartphones and mobile broadband is still rising at an impressive clip,” says Morningstar analyst Robert Goldsborough. “All risks considered, we think IYZ could offer a compelling investment opportunity. At the end of the day, we think demand for phone, television, and Internet connectivity will continue to expand.”
Other ETFs for the sector include Vanguard Telecom Services (NYSEArca: VOX) and SPDR S&P Telecom (NYSEArca: XTL).
iShares Dow Jones US Telecom ETF
