iShares Global Telecom ETF: A Compelling Combination Of Dividends, International Growth

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    Published Fri, 03 Aug 2012 14:28:19 -0400 on Seeking Alpha


    Looking for exposure to rapid growth in the wireless telecommunications industry in emerging markets, while at the same time enjoying healthy levels of income and lower volatility? Consider iShares S&P Global Telecommunications (IXP). This narrowly focused exchange-traded fund is an appropriate way to tap into an attractive mix of stable, mature, U.S.-based telecom firms, which make up about one third of this fund's assets, and overseas wireless and land-line providers, many of which have access to faster-growing emerging markets where phone penetration levels have long runways ahead. With a dividend yield approaching 5% and a three-year beta of just 0.66, IXP offers stability at a time when many investors are concerned about equity market volatility. And it provides unique exposure as the only ETF to straddle the divide between U.S. and foreign-based telecoms. The fund tilts heavily toward the largest global telecoms, holding just 37 companies and... Read more