Back to top

Why Tech Investors Should not Ignore These ETFs

Read MoreHide Full Article

This is the most important week of the second quarter earnings season with 180 S&P 500 companies reporting. Earnings reports from the biggest names on Wall Street  including Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Google parent Alphabet (GOOG - Free Report) , Amazon (AMZN - Free Report) and Facebook (FB - Free Report) are expected this week.

Two of those giants, Google and Facebook are not included in the technology sector but are a part of the communication services sector. This sector was created about three years back, following a major reshuffling in the Global Industry Classification Standard (GICS), which is used by major index providers including S&P Dow Jones and MSCI.  

Communication services is one of the top performing sectors this year with a gain of about 24%. Excellent results reported by  Snap (SNAP - Free Report) and Twitter (TWTR - Free Report) reaffirmed continued growth  in the digital ad market and have raised hopes for Facebook and Google results.

The Communication Services Select Sector SPDR Fund (XLC - Free Report) and Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) are market cap weight ETFs with outsized exposure to the two giants in the space. The Invesco S&P 500 Equal Weight Communication Services ETF (EWCO - Free Report) follows an equal-weighted index.

Please watch the short video above to learn more about these ETFs.