The communication services sector officially launched in September, turning attention to new exchange traded funds such as the cap-weighted Communication Services Select Sector SPDR Fund (NYSEArca: XLC).

Now, investors have an equal-weight avenue to playing the communication services sector. The Invesco S&P 500 Equal Weight Communication Services ETF (NYSEARCA: EWCO) debuted on Nov. 7th.

EWCO targets the S&P 500 Equal Weight Communication Services Plus Index, which is the equal-weight equivalent of the benchmark tracked by XLC.

EWCO’s underlying index “is comprised of common stocks of companies in the Global Industry Classification Standard (GICS) communication services sector within the S&P 500 Index. The Fund and Index will rebalance quarterly after the close of business on the third Friday in March, June, September and December,” according to Invesco.

Important Communication Services Differences

XLC tries to reflect the performance of the, Communication Services Select Sector Index, which includes companies that have been identified as Communication Services companies by the Global Industry Classification Standard. Specifically, XLC will include securities of companies from diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.