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Is It Too Late To Play Defense With Telecom ETFs?

21 September 2011 at 10:34 am by Staff     Bookmark and Share    Follow EtfExpert on Twitter

Over the last 9 months, both Verizon and AT&T have beaten the broader U.S. equity markets. For that matter, so have the ETFs representing non-cyclical segments like consumer staples, health care and utilities.

Yet telecom doesn’t quite get the same rep as being a defensive equity play. Granted, its relationship with technology may have a great deal to do with telecom’s perception. Nevertheless, Telecom ETFs often generate the highest yield of any sector fund.

Some folks may feel comfortable picking Verizon over AT&T, or vice versa. Others may seek an advantage by digging deeper into the possibilities, from MetroPCS to Virgin to Frontier. Still others like the exceptionally high yields from global corporations as diverse as New Zealand Telecom, China Mobile and Vodafone Group.

If you’re one of those who prefer indexing to individual stock picking, however, owning the highest yielding space in equities may be your ticket. Keep in mind, though, you won’t be the only person chasing yield in a low interest environ. What’s more, Q4 historically belongs to the risk-takers in cyclical segments like energy, tech and consumer discretionary. 

Five Telecom ETFs Your Broker Forgot to Mention– Benzinga
Copper ETFs Hit New Low, A Bad Omen For Stocks – Trang Ho, Investor’s Business Daily
Steel Stocks: A Contrarian Buy– Mark Salzinger, The Stock Advisors
Reviewing The Essential Facts Of Leveraged ETFs– Michael Thomsett, Minyanville

 

 

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Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.

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