The $619.1 million fund has a trailing 12-month yield of 2.9% and is rated marketweight by S&P Capital IQ.
“S&P Capital IQ has an overall Marketweight ranking on VOX, which seeks to track the price performance of the underlying holdings in the MSCI US Investable Market Telecommunication Services Index. VOX is comprised solely of U.S Telecom Services investments, with roughly 61% in Integrated Telecom Services, 24% in Wireless Services, and 15% in Alternative Carriers. Its top 10 holdings comprise 69% of the $562 million total assets.
“Bellwethers Verizon and AT&T comprise, in aggregate, 44% of the ETF’s holdings and are yielding 4%-5%. Within the top 10 holdings, 9% of the ETF’s holdings are in tower companies, 5% are in pure play wireless carriers, and 4% are in high dividend yielding wireline carriers. VOX pays a healthy 2.9% dividend yield, above the S&P 500 yield of 2%,” said S&P in the note.
With an annual expense ratio of 0.14%, VOX is cheap, but the cheapest telecom ETF is the new Fidelity MSCI Telecommunication Services Index ETF (NYSEArca: FCOM), which charges 0.12% per year. The SPDR S&P International Telecommunications Sector ETF (NYSEArca: IST) is 2013’s top-performing telecom ETF. [This Telecom ETF Didn’t Disappoint in 2013]
Vanguard Telecommunication Services ETF
