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Definition: Communication Industry ETF
Communication Industry ETFs are exchange traded funds that deal in telecommunication companies including integrated wireless and wire line providers, companies providing services or manufacturing communications’ tools and equipments. These ETFs track the performance of a telecom index. Such ETFs come with the benefits of tax advantages, ease of use, and may incur lower fees.
This sector ETFs may range from Global exposure to restricted group of companies in the sector. Telecom ETFs generally incur low expense ratio, though one must be cautious of large bid and ask price differences. Telecom companies are attractive due to their high dividends and stable cash flows and perform well during unstable economic periods. However, Communication Industry ETFs tend to move slower in bullish markets.