A sector ETF with yield: Own 44 global telecoms with IXP

The telecom business is definitely not recession-proof, as those that have followed the industry have recently realized, but it is not a field that is going to fade into the horizon any time soon either. Simply
put, people need to communicate and the telecom business is poised to continue rolling with the new technology and bringing people what they need. If you see the value of telecom companies and agree that their future is, perhaps not golden, but definitely strong, then an investment in an Exchange Traded Fund (ETF) is an excellent way to invest in the future of the telecom field without placing all of your trust in one specific company.

iShares S&P Global Telecommunications Sector ETF (NYSE: IXP) let’s you own shares in some of the most noted and reliable telecom companies by simply purchasing shares of the one ETF. With IXP you’ll find your investment basket is loaded with companies such as Amercia Movil, S.A.B. (NYSE: AMX) a fixed and wireless provider in Latin America, AT&T, Inc. (NYSE: T) a telecom provider for customers in the U.S. and worldwide, Verizon Communications (NYSE: VZ) a wireline and domestic wireless provider across the globe, as well as several other highly rated and well known telecom leaders.

iShares charges only a 0.48% fee to maintain IXP using computers rather than money managers. IXP also has typically paid about $1.50 per year in dividends — IXP is down about (41%) this year so that’s about a 4% yield — and these companies seem to have the cash-generating ability to continue dividends.

Of the 44 stocks in IXP, the top 10 holdings total about 71% of all total assets. Take note of the global exposure you’ll get by investing in the future of the telecom industry:

17.19%: AT&T INC(NYSE:T)
10.61%: VODAFONE GROUP PLC(NYSE:VOD)
9.47% : TELEFONICA SA(NYSE:TEF)
9.05%: VERIZON COMMUNICATIONS IN(NYSE:VZ)
5.01%: CHINA MOBILE LTD(NYSE:CHL)
4.94%: FRANCE TELECOM SA(NYSE:FTE)
4.57%: DEUTSCHE TELEKOM AG-REG(NYSE:DT)
3.98%: NIPPON TELEGRAPH & TELEPHONE(NYSE:NTT)
3.21%: TELSTRA CORP LTD (Other OTC:TLS)
2.71%: BCE INCNYSE:BCE)