Investors are embracing defensive, low beta sector exchange traded funds, in significant fashion. Leaders of that trend are viewed as consumer staples and utilities ETFs, but telecom funds are delivering impressive performances as well.

Telecom ETFs such as the Vanguard Telecommunication Services ETF (NYSEArca: VOX) and the iShares U.S. Telecommunications ETF (NYSEArca: IYZ) are benefiting from the Federal Reserve backing off of raising interest rates this year, an important factor because telecommunications is one of the most rate-sensitive sectors.

AT&T and Dow component Verizon (NYSE: VZ) combine for significant percentages of the lineups in IYZ and VOX. In the case of VOX, the Vanguard telecom ETF, those stocks combine for over 44% of that fund’s weight.

Related: 6 Telecom ETFs to Dial Into Verizon, AT&T, Vodafone

International telecom stocks and exchange traded funds represent an option for yield-starved investors that are also looking to reduce their exposure to rising U.S. Treasury yields. That theme can be accessed with the iShares Global Telecomm ETF (NYSEArca: IXP).

Some analysts are bullish on big-name telecom stocks, including AT&T and Verizon, even though those stocks have run up this year. Importantly, those stocks are not stretched on valuation.

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