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iShares U.S. Telecommunications ETF (IYZ)

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  • Dec. 12, 2014, 3:33 AM
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  • Nov. 11, 2014, 2:52 AM
    • The U.S. and China have reached an agreement to drop tariffs on a wide range of tech products, expanding upon their previous Information Technology Agreement at a time of strained relations.
    • Eliminating tariffs on sales of roughly $1T, the deal would liberalize trade in more than 250 categories ranging from semiconductors to medical devices.
    • The agreement has yet to be signed off by other countries involved in the talks, and will be discussed in Geneva by members of the WTO in December.
    • ETFs: XLK, VGT, KWEB, SOXL, FDN, TECL, USD, SMH, TDIV, IYZ, IYW, ROM, VOX, SOXX, CQQQ, XSD, QQQC, SOXS, PBS, TECS, FTEC, RYT, IGV, IGM, QTEC, FXL, PSI, PSCT, SSG, IGN, MTK, PXQ, REW, XTL, XSW, PSJ, PTF, FCOM, LTL, TLL
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  • Oct. 26, 2014, 9:44 AM
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  • Jul. 7, 2014, 3:56 AM
    • The U.S. has warned China that treaties and other global negotiations could be in danger if negotiations fail regarding their high-tech product international trade agreement. The agreement includes an annual $2T in trade, and eliminates tariffs and other trade barriers on IT products.
    • China has recently excluded approximately 60 new product categories, including medical devices and next-generation silicon chips, from the trade agreement. American authorities are looking to use this week’s annual U.S.-China Strategic and Economic Dialogue to update the 1996 Information Technology Agreement.
    • U.S. officials warn that if an agreement is not reached, increased opposition will be taken in Congress toward other trade deals with China.
    • ETFs: XLK, VGT, FDN, SOXL, KWEB, TECL, USD, SMH, PNQI, IYZ, TDIV, IYW, ROM, VOX, CQQQ, SOXX, QQQC, XSD, SOXS, PBS, TECS, FTEC, IGV, RYT, IGM, QTEC, PSCT, FXL, IGN, PSI, MTK, SSG, REW, PXQ, XSW, XTL, PSJ, PTF, FCOM, LTL, TLL
    | 1 Comment
  • Feb. 4, 2014, 9:28 AM
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  • Jan. 8, 2014, 10:34 AM
    • "The Safety Bubble Deflates," goes the title of a new report from Bernstein's Seth Masters, adding his name to those voices suggesting "safe" assets have become otherwise.
    • Even though utilities, telecom, and consumer staples have underperformed of late, says Masters, their relative valuations are still well above the average over the last 50 years. "In periods of stress, investors tend to prize stability and safety too much. But in time, investors discover that every investment carries with it some degree of risk: if not risk of loss, then risk of inadequate growth."
    • Related ETFs: XLU, IDU, VPU, NLR, GRID, JXI, NUCL, DBU, IPU, RYU, PUI, UPW, FXU, SDP, PSCU, AXUT, FUTY, UTLT, XLP, VDC, FXG, RHS, FSTA, PSL, PSCC, IYZ, VOX, IXP, IST, XTL, LTL, FCOM, TLL, AXTE
    • Barron's Jack Hough says the "low beta" approach is a flawed one: First, volatility can change quickly as companies' or industries' fortunes shift; Second, beta tells one nothing about whether a stock's valuation is high or low. In a similar warning over low volatility stocks, BAML suggests looking for companies with smooth earnings rather than smooth stock prices. Screening for such, Hough finds CSX Corp (CSX -0.6%), DuPont (DD +0.6%), Cisco (CSCO -0.6%), and Halliburton (HAL -0.8%).
    • Low volatility ETFs: SPLV, USMV, ACWV
    | 7 Comments
  • Sep. 12, 2013, 1:39 PM
    • Dividend payers may be a good place to hide out from rising interest rates, but those stocks sporting the highest yields - telecoms and utilities - tend to have slow payment growth, making them less-attractive as rates rise. Checking back to the 1994 bond bear market, telecoms and utilities were among the market's worst performers.
    • Better to shop for modest payers, but above-average payment growth. Barron's screens for those characteristics combined with reasonable overall valuation and turns up three names: Boeing (BA), CVS Caremark (CVS), and GE.
    • Certain dividend ETFs employ this strategy as well, with Vanguard's Dividend Appreciation (VIG) - almost zero exposure to telecoms and utilities  - and WisdomTree's U.S. Dividend Growth ETF (DGRW) coming to mind. Others include DGRS, DNL, EMDG, DGRE.
    • Other dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
    • Telecom and utility ETFs: IYZ, XTL, VOX, LTL, TLLIDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
    | 4 Comments
  • Aug. 17, 2013, 9:02 AM
    • The market's more richly valued than you think, writes Jack Hough in Barron's, as Q4 S&P 500 (SPY) earnings are expected to rise 10.5% on just a 0.6% increase in revenue. "Where's that margin growth going to come from," asks S&P's Howard Silverblatt. "Most of us aren't exactly napping on the job as it is."
    • Avoid sectors particularly prone to estimates cuts like consumer discretionary (XLY) and telecom (IYZ), suggests Hough, but favor safer groups like tech (XLK, though Cisco last week calls "safe" into question) and health care (XLV).
    • A stock screen scoring companies by free cash yield as well as ability to still boost margins yields 5 top picks:
    • Pfizer (PFE) trades inline with a slow-grower like Merck (MRK) but maybe deserves a multiple closer to a fast-grower like Bristol-Myers Squibb (BMY).
    • Danaher (DHR) - it trades at what seems like a pricey 18x earnings, but just 15x projected free cash.
    • Lear (LEA) at 10x earnings is growing faster than the auto market as a whole as it picks up market share and electrical content in cars is rising.
    • Oracle (ORCL) and Qualcomm (QCOM) have both seen earnings growing faster than their share price of late, leaving them attractively priced.
    • The screen also yielded 3 to avoid:
    • Tiffany (TIF) at 20x earnings is pricing in faster earnings growth in 2014. Praxair (PX) expectations are for a near-doubling in earnings growth to 13%. Lennar (LEN) with 32% projected earnings growth remains pricey even as the housing recovery appears to be slowing.
    | 3 Comments
  • Jul. 1, 2013, 11:32 AM
    Get out of transports (IYT), says Citigroup, noting the sector will be hard-pressed to continue its 400 basis point outperformance to the S&P 500 over the last quarter. In addition to expected cyclical weakening, Citi says seasonals don't favor transports during the summer. Also lowered to underweight is telecoms (XTL, IYZ) despite attractive valuations, as Citi believes technology will continue to erode pricing power.
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  • Jun. 25, 2013, 10:43 AM
    Short interest in S&P 500 stocks has virtually disappeared, but what few remain are concentrated in Telecom (IYZ), Commercial Services, Semiconductors (XSD), Consumer Durables (XLY), and Retail (XRT). Where they're not are in Household Goods (XLP), Autos (CARZ), and Utilities (XLU, IDU).
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  • Jun. 19, 2013, 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.
    | 3 Comments
  • Jun. 18, 2013, 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.
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  • May. 30, 2013, 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.
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  • Mar. 27, 2013, 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%.
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  • Jan. 24, 2013, 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.
    | 2 Comments
  • Jan. 8, 2013, 3:29 PM
    Vanguard's recent expense reduction means 9 of its 10 sector ETFs are now the cheapest available to U.S. investors. With an annual expense ratio of just 0.14%, VOX, VPU, VCR, VDC, VDE, VHT, VIS, VGT, and VAW stack up favorably vs. the 0.18% charged  by State Street's Sector SPDRs (XLU, XLY, XLP, XLE, XLF, XLV, XLK, XLI, XLB and XTL which charges 0.35%) and the 0.47%-0.48% iShares sector ETFs (RXI, KXI, IYE, IYF, IYZ, IYH, IDU, IYW, IYM, IYJ) charge. At 0.19%, Vanguard Financials (VFH) is still slightly more expensive than the Financial SPDR (XLF).
    | 2 Comments
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IYZ Description
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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Sector: Technology
Country: United States
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