Andrew McOrmond, Managing Director, ETF Trading Solutions, at WallachBeth Capital, discussed a new telecommunications ETF on CNBC on Monday that merges tech and media.
It’s called the Communications Services Select SPDR Fund (NYSEARCA: XLC) — it tracks the Communication Services Select Sector Index and “seeks to provide precise exposure to companies from the media, retailing, and software & services industries in the U.S.”
McOrmond said S&P indexes is making a shift, “taking stocks from technology sector, from the consumer discretionary sector and putting internet and media stocks together with telecom.”
“I think it’s a huge shift in ETFs,” McOrmond said. “It’s kind of a showing of the old guard of what we think is tech is changing to what the youth and millennials and their eventual children use to communicate with each other and then how it merges with tech as we know it.”
Watch the full segment below:
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