Telecom ETF Impact On AT&T Inc. (T) Price Cuts [Vanguard Telecommunication Services ETF]

However, the recent drop in prices of ETFs having sizeable exposure in AT&T can be used as a buying opportunity, as we have a favorable long-term outlook on the stock. Its bullish Zacks Industry Rank in the top 40% affirms this fact.

Below, we have highlighted two funds which have more than 20% exposure in AT&T and should be monitored closely by telecom investors.

VOX In Focus

VOX is the most popular ETF in the communications space. The fund has an asset base of $580 million and charges 14 bps in annual fees.

The product tracks the MSCI U.S. Investable Market Telecommunication Services 25/50 Index and holds 32 stocks in its basket.

The fund is highly concentrated in its top 10 holdings, which form around 70% of total fund assets. AT&T occupies the top position in the basket with 21.7% of assets, while Verizon has 21.3% exposure in the fund.

VOX dropped more than 4.5% in the past month, while it has lost 7.9% in the past three months.

FCOM in Focus

This fund follows the MSCI USA IMI Telecommunication Services 25/50 Index, holding 33 stocks in its basket.

AT&T takes the second spot at 21.2%, while the top spot is occupied by Verizon which makes up roughly 21.5% of the fund (read: Verizon Earnings Puts These Telecom ETFs in Focus).

The ETF is unpopular with just $25.5 million in AUM while its expense ratio comes in at 0.12%. The fund dropped around 4.5% in the past month and is also down 1.9% in the past three months.

This article is brought to you courtesy of Eric Dutram.

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