VOX: Potential For Outperformance With Cyclical Rotation

Summary

• VOX has underperformed more classic benchmarks, such as the S&P 500 (replicated by alternative ETF funds such as VOO).
• VOX, a Communication Services sector-focused fund, is a little cheaper than VOO, but perhaps only modestly.
• Nevertheless, given VOX's large exposures to telecoms and technology, it shows potential to benefit from cyclical rotation.
• As the United States enters into a more mature period of its current business cycle, I would maintain a bullish stance on VOX in the medium term.

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The Vanguard Telecom Services ETF (NYSEARCA:VOX) is an exchange-traded fund, part of the Vanguard family of funds, whose purpose is to track the performance of its benchmark, namely the MSCI USA Investable Market Index Communication Services (information on

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.