Communication Services is one of the top-performing sectors this year, with a gain of about 32%, just behind the tech sector. The new Communication Services sector was created in 2018 by broadening and renaming the old Telecom sector.

Google parent Alphabet (GOOGL Quick QuoteGOOGL - Free Report) , Meta Platforms (META Quick QuoteMETA - Free Report) , and Netflix (NFLX Quick QuoteNFLX - Free Report) are some of the high-profile stocks that reside in the sector and drive its performance, as they make up more than 50% of the sector.

Alphabet, which has heavily invested in AI and machine learning over the past few years, scrambled to roll out its chatbot competitor after ChatGPT’s explosive popularity. The search giant has since announced a slew of new products and tools that use generative AI. The stock is up over 40% this year.

Meta Platforms shares have surged over 110% as the company aggressively cuts costs in what CEO Zuckerberg has called the "year of efficiency." With the launch of Apple's (AAPL Quick QuoteAAPL - Free Report) mixed-reality headset this week, the competition in the AR and VR areas will heat up.

To learn about the Communication Services Select Sector SPDR ETF (XLC Quick QuoteXLC - Free Report) , the Vanguard Communication Services ETF (VOX Quick QuoteVOX - Free Report) and the Invesco S&P 500 Equal Weight Communication Services ETF (EWCO), please watch the short video above.