On the other hand, IST has jumped 14.1% since April 30, a time frame in which 10-year Treasury yields soared 71.2%. AT&T (NYSE: T) and Verizon (NYSE: VZ) may be vulnerable to rising interest rates in the U.S., but an ETF that allocates over two-thirds of its weight to the U.K., Japan, France, Spain and Germany will be less so and IST affirms as much.
Speaking of rates, IST’s trailing 12-month yield is almost 3.3%, about 40 basis points higher than the yield on 10-year Treasuries and the dividend yield on VOX.
Additionally, IST offers further capital appreciation potential because of its 20.5% weight to Vodafone (NYSE: VOD), a company that some industry observers believe is takeover bait after shedding its stake in Verizon Wireless earlier this year.
SPDR S&P International Telecommunications Sector ETF
