ETF Research and Analysis

by Robert Goldsborough
IShares U.S. Telecommunications ETF IYZ offers concentrated exposure to the U.S. telecom industry and is the most liquid U.S. telecom exchange-traded fund. This ETF holds 25 U.S.-domiciled telecom companies. Of the holdings,  Read more 

Bull Case

Some of the best-in-class telecom firms offer attractive dividend yields and have the capital and cash-generating ability to meet their near-term obligations and maintain dividend payments.
Major carriers have made good progress navigating the transition from voice to data thus far. Read more 

Bear Case

IYZ's expense ratio is much higher than a competing Vanguard ETF.
Growth in data services generally has been sufficient to replace most lost phone revenue recently, but the Internet access business is starting to mature while the pressure on the land-line phone business continues largely unabated. This has affected profitability, particularly for large carriers with big networks such as Verizon.
During the past few years, cable companies have provided the primary form of fixed-line competition for telecom companies, for both phone and Internet access customers. Read more 

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