The U.S. telecom industry is changing. Consumers are exchanging traditional land lines for cellphones. Cable providers are muscling in on the telecom space, expanding internet access and phone coverage. Some industry analysts expect further consolidation.
Telecom stocks and ETFs could also prove durable should the dollar rebound because among S&P 500 sectors, telecommunication services and utilities have the lowest reliance on global sales.
“IYZ itself broke out of a base on June 20, clearing a 32.17 buy point. The ETF is slightly extended from that entry, although historically it makes only modest gains from breakouts. For the year, the ETF is up about 17%,” according to IBD.
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iShares U.S. Telecommunications ETF