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Should You Invest in the iShares Global Comm Services ETF (IXP)?
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If you're interested in broad exposure to the Technology - Telecom segment of the equity market, look no further than the iShares Global Comm Services ETF (IXP - Free Report) , a passively managed exchange traded fund launched on 11/12/2001.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Telecom is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $259.36 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Telecom segment of the equity market. IXP seeks to match the performance of the S&P Global 1200 Telecommunications Services Sector Index before fees and expenses.
The S&P Global 1200 Telecommunications Services Sector Index measures the performance of companies are part of the telecommunications sector of the economy and are important to global markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.47%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 4.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Facebook Class An Inc accounts for about 10.84% of total assets, followed by Alphabet Inc Class C (GOOG - Free Report) and Alphabet Inc Class A (GOOGL - Free Report) .
The top 10 holdings account for about 64.14% of total assets under management.
Performance and Risk
Year-to-date, the iShares Global Comm Services ETF has lost about -10.42% so far, and is down about -7.39% over the last 12 months (as of 10/25/2018). IXP has traded between $52.93 and $62.51 in this past 52-week period.
The ETF has a beta of 0.65 and standard deviation of 12.43% for the trailing three-year period, making it a medium risk choice in the space. With about 80 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Global Comm Services ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IXP is an excellent option for investors seeking exposure to the Telecommunication ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Communication Services ETF (VOX - Free Report) tracks MSCI US Investable Market Telecommunication Services 25/50 Index and the Communication Services Select Sector SPDR Fund (XLC - Free Report) tracks COMMUNICATION SERVICES SELECT SECTOR IND. Vanguard Communication Services ETF has $1.10 B in assets, Communication Services Select Sector SPDR Fund has $2.80 B. VOX has an expense ratio of 0.10% and XLC charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the iShares Global Comm Services ETF (IXP)?
If you're interested in broad exposure to the Technology - Telecom segment of the equity market, look no further than the iShares Global Comm Services ETF (IXP - Free Report) , a passively managed exchange traded fund launched on 11/12/2001.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Telecom is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $259.36 M, making it one of the average sized ETFs attempting to match the performance of the Technology - Telecom segment of the equity market. IXP seeks to match the performance of the S&P Global 1200 Telecommunications Services Sector Index before fees and expenses.
The S&P Global 1200 Telecommunications Services Sector Index measures the performance of companies are part of the telecommunications sector of the economy and are important to global markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.47%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 4.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Facebook Class An Inc accounts for about 10.84% of total assets, followed by Alphabet Inc Class C (GOOG - Free Report) and Alphabet Inc Class A (GOOGL - Free Report) .
The top 10 holdings account for about 64.14% of total assets under management.
Performance and Risk
Year-to-date, the iShares Global Comm Services ETF has lost about -10.42% so far, and is down about -7.39% over the last 12 months (as of 10/25/2018). IXP has traded between $52.93 and $62.51 in this past 52-week period.
The ETF has a beta of 0.65 and standard deviation of 12.43% for the trailing three-year period, making it a medium risk choice in the space. With about 80 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Global Comm Services ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IXP is an excellent option for investors seeking exposure to the Telecommunication ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Communication Services ETF (VOX - Free Report) tracks MSCI US Investable Market Telecommunication Services 25/50 Index and the Communication Services Select Sector SPDR Fund (XLC - Free Report) tracks COMMUNICATION SERVICES SELECT SECTOR IND. Vanguard Communication Services ETF has $1.10 B in assets, Communication Services Select Sector SPDR Fund has $2.80 B. VOX has an expense ratio of 0.10% and XLC charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.