VOX “has small-cap and midcap stocks, it is largely a big-cap fund, with a median market capitalization of $18.5 billion. Two-thirds of the portfolio, which tracks an MSCI index, is in integrated telecoms. It fell out of the IBD ETF Sector Rotation index Friday,” reports Investor’s Business Daily.
Currently, in a uneven market where raw materials-related sectors are underperforming in a depressed commodities environment, the telecom space has stood out as a positive driver of market earnings. Telecom services are seen as one of the few ares of positive earnings growth.
“Vanguard Telecommunications’ chart is forming a base with a potential buy point at 94.25. The price behavior has been much calmer during the nine-week-old basing period than in the prior consolidation (from May 2015 to March), which suffered from some sharp price moves. That change in character is a plus in chart readers’ eyes,” adds IBD.
For more news and strategy on the Telecom market, visit our Telecom category.
Vanguard Telecommunication Services ETF
