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Should You Invest in the iShares Global Telecom ETF (IXP)?
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If you're interested in broad exposure to the Technology - Telecom segment of the U.S. equity market, look no further than the iShares Global Telecom ETF (IXP - Free Report) , a passively managed exchange traded fund launched on 11/12/2001.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Telecom is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $406.51 M, making it one of the larger ETFs attempting to match the performance of the Technology - Telecom segment of the U.S. 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.52%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, At&t Inc (T - Free Report) accounts for about 18.28% of total assets, followed by Verizon Communications Inc (VZ - Free Report) and Vodafone Group Plc (VOD - Free Report) .
The top 10 holdings account for about 71.45% of total assets under management.
Performance and Risk
So far this year, IXP has lost about -3.37%, and is up about 2.15% in the last one year (as of 04/25/2018). During this past 52-week period, the fund has traded between $56 and $62.51.
The ETF has a beta of 0.67 and standard deviation of 13.13% for the trailing three-year period, making it a medium risk choice in the space. With about 45 holdings, it has more concentrated exposure than peers.
Alternatives
IShares Global Telecom ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. IXP, then, is not a suitable option for investors seeking exposure to the Telecommunication ETFs segment of the market. However, there are better ETFs in the space to consider.
IShares U.S. Telecommunications ETF (IYZ - Free Report) tracks Dow Jones U.S. Select Telecommunications Index and the Vanguard Telecommunication Services ETF (VOX - Free Report) tracks MSCI US Investable Market Telecommunication Services 25/50 Index. IShares U.S. Telecommunications ETF has $309.02 M in assets, Vanguard Telecommunication Services ETF has $1.07 B. IYZ has an expense ratio of 0.44% and VOX charges 0.10%.
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 Telecom ETF (IXP)?
If you're interested in broad exposure to the Technology - Telecom segment of the U.S. equity market, look no further than the iShares Global Telecom ETF (IXP - Free Report) , a passively managed exchange traded fund launched on 11/12/2001.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Telecom is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $406.51 M, making it one of the larger ETFs attempting to match the performance of the Technology - Telecom segment of the U.S. 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.52%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, At&t Inc (T - Free Report) accounts for about 18.28% of total assets, followed by Verizon Communications Inc (VZ - Free Report) and Vodafone Group Plc (VOD - Free Report) .
The top 10 holdings account for about 71.45% of total assets under management.
Performance and Risk
So far this year, IXP has lost about -3.37%, and is up about 2.15% in the last one year (as of 04/25/2018). During this past 52-week period, the fund has traded between $56 and $62.51.
The ETF has a beta of 0.67 and standard deviation of 13.13% for the trailing three-year period, making it a medium risk choice in the space. With about 45 holdings, it has more concentrated exposure than peers.
Alternatives
IShares Global Telecom ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. IXP, then, is not a suitable option for investors seeking exposure to the Telecommunication ETFs segment of the market. However, there are better ETFs in the space to consider.
IShares U.S. Telecommunications ETF (IYZ - Free Report) tracks Dow Jones U.S. Select Telecommunications Index and the Vanguard Telecommunication Services ETF (VOX - Free Report) tracks MSCI US Investable Market Telecommunication Services 25/50 Index. IShares U.S. Telecommunications ETF has $309.02 M in assets, Vanguard Telecommunication Services ETF has $1.07 B. IYZ has an expense ratio of 0.44% and VOX charges 0.10%.
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.