5-Star ETFs Poised to Pop: iShares S&P Global Telecom

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares S&P Global Telecommunications Sector Index Fund (NYS: IXP) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at iShares S&P Global Telecom and see what CAPS investors are saying about the ETF right now.

iShares S&P Global Telecom facts


November 2001

Total Assets

$439.4 million

Investment Approach

Seeks investment results that correspond to the S&P Global 1200 Telecommunications Sector Index, which includes diversified communication carriers and wireless communications companies.

Expense Ratio


1-Year / 3-Year / 5-Year Annual Returns

1.9% / 9.7% / 2.1%

Top Holdings with High CAPS Interest (at least 1,000 Active Picks) and Portfolio Weight

AT&T (NYS: T) (15.4%)
Vodafone Group (NAS: VOD) (12.2%)
Verizon Communications (NYS: VZ) (9.6%)

Dividend Yield



iShares Dow Jones U.S. Telecom (NYS: IYZ)
Vanguard Telecom Services (NYS: VOX)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 98% of the 93 members who have rated iShares S&P Global Telecom believe the ETF will outperform the S&P 500 going forward. These bulls include All-Star Calegro and Geofiz.

Having gotten on board a few years ago, Calegro touched on the ever-increasing importance of the telecom sector:

It has all my favorite stocks all in one basket ... OK I'm biased toward Telecommunication stocks. Try NOT taking your mobile with you for the next 2 days; or remember the time when you can't get a signal and you vaguely feel like you'd just lost your two front teeth. Get it?!

iShares S&P Global Telecom, in particular, sports an annual turnover ratio of just 6%. That's lower than that of other telecom ETFs like iShares Dow Jones U.S. Telecom (29%) and Vanguard Telecom Services (21%).

CAPS member Geofiz expands on the outperform argument:

[iShares S&P Global Telecom] is a great way to play telecom growth in emerging markets, while tempering the inevitable dips and peaks in such investments with established stabilizing influences (AT&T and Vodaphone). ... [E]xpense ratio is low at 0.48%. I own the stock in my IRA, reinvesting dividends while sheltering same from taxes.

What do you think about iShares S&P Global Telecom, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackiShares S&P Global Telecom?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Vodafone. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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