The iShares Dow Jones U.S. Telecommunications Sector Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Telecommunications Index.
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Wednesday, June 19, 10:53 AM
"Sell in May and go into cyclicals," says Ralph Acampora after the last month. He reminds of an old adage saying sectors going down the least during a selloff become the new market leaders. During SPY's 5.2% decline from May 22-June 6, the best performers were Tech (XLK) and Industrials (XLI). The worst were Telecommunications (IYZ) and Utilities (XLU). This "rolling rotation" between sectors is necessary, he says, to give further life to the secular bull market begun in March 2009.
Tuesday, June 18, 9:11 AM
BAML private clients bought the dip last week, with the flows going via ETFs into large-cap and dividend plays like Utilities (XLU, IDU) - which saw the greatest buying since November 2011. Another favorite of the dividend crowd, Telecoms (IYZ) saw the biggest inflows since February. After buying through the spring, hedge funds turned sellers last week, and are now net-sellers YTD - just like 2012.
Thursday, May 30, 3:26 AM
While service providers have been worrying about households ending their cable TV subscriptions, a bigger trend has been customers dropping wire-line Internet. With consumers being able to take advantage of faster cellular networks and the proliferation of WiFi, 1% of households ended their Internet subscription last year vs 0.4% for pay-TV.
Wednesday, March 27, 3:07 PM
Updating its ETF matrix, Bespoke finds all the major U.S. index ETFs up about 10% YTD, with the leading sectors health care (XLV) and consumer staples (XLP) - each up more than 13%. Dragging are telecom (IYZ), materials (XLB), and tech (XLK). About all country ETFs are in the red, with the exceptions of Japan (EWJ) and Mexico (EWW). Leading everything is natural gas (UNG), up 17.7%.
Thursday, January 24, 1:31 PM
A look at the relative strength of S&P 500 sectors vs. the overall average over the past year finds 3 - Consumer Discretionary (XLY), Financials (XLF), and Health Care (XLV) outperforming. Big outperformers a few months back, Telecom (IYZ) and Utilities (XLU) now trail. Underperforming badly not long ago, Energy (XLE) and Industrials (XLI) claw their way back.
Wednesday, October 17, 2012, 9:13 PM
Currently weighting U.S. telecoms and utilities at zero in his dividend stock portfolio, Pimco's Brad Kinkelaar notes both sectors are trading at near off-the-chart premiums to their average relative multiple. Dividend investors would do better to look overseas, he says, where one can find companies that are growing, paying good dividends, and trading at better value. An excellent presentation.
7 Comments[Quick Ideas]
Tuesday, August 14, 2012, 8:11 AM
A nice summary (via tradefast) of Q2 13F filings shows hedge funds riding the defensive play trend, adding to holdings in Consumer Staples, Health Care, Telecom, and Utilities, while cutting exposure to Tech, Energy, Financials, and Materials.
Tuesday, January 10, 2012, 10:52 AM
Liquidity in the telecom and cable sector remains strong, says Fitch, while margins are solid despite competition. These factors should provide a "sufficient buffer to material negative rating changes" in the face of economic headwinds. Of Fitch-rated issuers, 90% have a Stable Outlook, 5% are Positive, and 5% are Negative.
Wednesday, October 12, 2011, 3:42 PM
Telecoms could take on some collateral damage from the BlackBerry outage after customers demand refund and credits for lost services, according to SmartMoney. Though Research In Motion's (RIMM -2.2%) network is clearly to blame, phone companies may feel pressured to satiate a slew of unhappy customers with credits and early upgrades.
Friday, August 19, 2011, 4:27 PMAccording to Bespoke, the S&P 500's trailing P/E has fallen over 3 points since 4/29, to 12.44. While the financial sector has the lowest P/E (10.62), multiples for the healthcare (11.23) and tech (12.79) sectors are also near 18-year lows. The telecom sector (17.50) stands alone in having a trailing P/E above 15.
1 Comment[Healthcare, Financials, Tech]
Friday, July 8, 2011, 9:14 AM
The mobile industry accounts for 2% of the world's GDP, according to data released by analyst Chetan Sharma. As consumers' demand for data rises 4X-6X per year, carriers have to balance competitive pricing plans with protecting margins. Sharma sees carriers integrating Wi-Fi into networks as a way to boost profits.
Thursday, June 23, 2011, 3:18 PM
ST Ericsson warns it will take longer than expected to turn a profit due to falling demand for its legacy products. In an attept to turn things around, it plans to carry out a review of it's global workforce, aiming to save around $120M by 2012. ERIC -2.5%, STM -3.9%.
Comment![Tech, On the Move]
Thursday, May 19, 2011, 1:26 PM
The real battle for smartphone combatants Apple (AAPL) and Google (GOOG) may not be against each other - it may be against dumbphones. While smartphones now account for a record 27% of phone shipments, that means the other 73% of the market has yet to be penetrated. Which means it may be less predictable (and less discountable) than expected.
6 Comments[Tech, Consumer, Quick Ideas]