iShares US Telecommunications ETF earns a Morningstar Medalist Rating of Negative with strength in areas such as People offset by weaker spots such as Process. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy earns a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in quality exposure and an overweight in yield exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Cisco Systems

Verizon

Comcast

AT&T

Motorola Solutions

Arista Networks

T-Mobile US

Frontier Communications Parent

Iridium Communications

Charter Communications

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. iShares US Telecommunications ETF earns a Below Average Process Pillar rating. The process is bolstered by the firm's five-year retention rate of 92% over the period. However, the rating is limited by the fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results of the Russell 1000 Telecommunications RIC 22.5/45 Capped Index.  The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The underlying index measures the performance of the telecommunications sector of the U.S. equity market and as defined by FTSE Russell. The fund is non-diversified. 

 The portfolio is overweight in technology by 26.5 percentage points in terms of assets compared with the category average, and its industrials allocation is similar to the category. The sectors with low exposure compared to category peers are communication services and consumer cyclical, underweight the average by 18.9 and 4.5 percentage points of assets, respectively. The portfolio is composed of 22 holdings and is relatively concentrated. Specifically, 73.7% of the strategy's assets are housed within the top 10 holdings, compared with the typical peer's 64.1%.

Below Average

Process

iShares US Telecommunications ETF's strong equity team drives the strategy's Above Average People Pillar rating. There are three managers listed on the fund: Greg Savage, Jennifer Hsui, Paul Whitehead. Experience on the team is abundant, with 18 years of average portfolio management experience. Together, they manage a total of 258 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares U.S. Telecommunications ETF

IYZ tracks a market-cap-weighted index of large-cap US companies involved in the telecommunications industry.

First Trust NASDAQ Cybersecurity ETF

FT Cboe Vest DJIA Dogs 10 Target Income ETF

Amplify Cybersecurity ETF

iShares MSCI USA Value Factor ETF

Cisco (CSCO) beat estimates on both earnings and revenues but provided a weak outlook and revealed plans to lay off 5% of its global workforce, pushing its share price down.

Cisco Beats on Earnings, Trims Outlook: ETFs in Focus

Fidelity MSCI Telecommunication Services Index ETF

Invesco S&P 500 Equal Weight Communication Services ETF

Vanguard Telecommunication Services ETF

Look into how telecomm ETFs reacted to Q4 earnings.

Assessing Telecomm ETFs Amid Q4 Earnings

Telecommunications have become the backbone of our society. iShares U.S. Telecommunications ETF has been a relative underperformer against the S&P 500 for years now, but the price ratio looks like it's bottoming. On the downside, the telecom sector is highly regulated and capital-intensive, which can impact the profitability of companies in this space.

IYZ: Telecom Sector Is Interesting, But Beware Of Concentration Risk

Hewlett Packard

iShares Cybersecurity and Tech ETF

SPDR S&P Telecom ETF

On Jan 9, 2024, Hewlett Packard Enterprise (HPE) has announced its intention to acquire networking gear vendor Juniper Networks in an all-cash deal valued at approximately $14 billion.

HPE-Juniper Pact to Boost Telecom & Cybersecurity ETFs

Communication Services Select Sector SPDR Fund

With the Telecom sector posting results for Q3 2023, look into Telecom ETFs to capitalize on the opportunities present.

Assessing Telecomm ETFs Amid Q3 Earnings

Proshares Big Data Refiners ETF

The Future Fund Active ETF

iShares North American Tech-Multimedia Networking ETF

Pacer Data And Digital Revolution ETF

IP-based networking company Cisco Systems (CSCO) has announced its acquisition of cybersecurity heavyweight, Splunk (SPLK), for a staggering $28 billion.

ETFs in Focus as Cisco Acquires Splunk in $28 Billion AI-Deal

First Trust Dow Jones Internet Index Fund

Cisco (CSCO) beat on both earnings and revenues but offered a downbeat guidance for the fiscal year. This has put ETFs with the largest allocation to this networking giant in focus.

Cisco Beats on Q4 Earnings: ETFs in Focus

With the Telecom sector posting mixed results for Q2 2023, look into Telecom ETFs to capitalize on the opportunities present.

How Will Telecom ETFs React to Mixed Q2 Earnings?

With the advent of Generative AI, the IYZ and XLC ETFs which provide exposure to the communications services ecosystem have seen their share prices move in opposite directions. This is due to the strategies of their main holdings as to artificial intelligence. XLC leads in terms of AI adoption, while IYZ should benefit as a result of the novel technology diffusing throughout the U.S. economy.

IYZ Vs. XLC: Comparing Generative AI Strategies Of Main Holdings

Invesco Dynamic Networking ETF

Cisco beat on both earnings and revenues, and offered an encouraging revenue guidance for the current quarter. However, orders declined 23%%, sending shares down.

Cisco Q3 Earnings Beat, Shares Fall: ETFs in Focus

With AT&T and Verizon reporting their earnings for Q1 of 2023, take a look into how the Telecommunications sector is performing.

How Will Telecom ETFs Navigate Mixed Results in Q1 Earning?

Cisco Systems (CSCO) beat on both earnings and revenues, and offered encouraging revenue guidance for the current quarter. Cisco also raised its fiscal-year revenue outlook.

ETFs to Tap as Cisco Beats on Q2 Earnings, Raises View

Cisco (CSCO) cheered investors with first-quarter fiscal 2023 results. The networking giant beat on both earnings and revenues, and offered an encouraging revenue guidance for the current quarter.

ETFs to Tap as Cisco Tops Fiscal Q1 Earnings

Cisco Systems (CSCO) beat on both earnings and revenues, and provided an upbeat revenue forecast for the October quarter, citing easing supply-chain constraints.

Cisco Pops on Earnings Beat: ETFs to Buy

Though Cisco beat on earnings, it missed on revenues and lowered its revenue guidance for the ongoing quarter on concerns about China's COVID shutdown that accelerated supply-chain problems.

Cisco Tumbles on Sales View Cut: ETFs in Focus

Cisco Systems (NasdaqGS: CSCO) come out with a rare quarterly disappointment, dragging down telecommunication sector-related exchange traded funds, after missing Wall Street's expectations. The iShares U.S. Telecommunications ETF (IYZ) was 2.3% lower on Thursday.

Cisco's Rare Miss Weighs on Telecommunications ETFs

Let's look at some big telecom earnings releases and see if these can impact ETFs exposed to the space.

How Will Telecom ETFs React to Decent Q1 Earnings?

How Will Telecom ETFs React to Decent Q4 Earnings?

SPDR Gold Trust

iShares TIPS Bond ETF

Vanguard Health Care ETF

Energy Select Sector SPDR Fund

Consumer Staples Select Sector SPDR Fund

Utilities Select Sector SPDR Fund

Considering inflation is one of the critical economic issues today, investors and analysts would benefit from in-depth research regarding its causes and effects. Inflation is rising due to production cuts, high job quits, and ongoing monetary and fiscal stimulus.

Inflation Will Accelerate Until The Economy Hits The Wall

How Will Telecom ETFs React to Decent Q3 Earnings?

iShares U.S. Utilities ETF

iShares U.S. Consumer Services ETF

iShares U.S. Financials ETF

iShares U.S. Industrials ETF

iShares U.S. Consumer Goods ETF

iShares U.S. Basic Materials ETF

iShares U.S. Technology ETF

Plus, some new closures are on the books.

ETF Odds & Ends: Busy Week Of Launches

iShares U.S. Energy ETF

iShares U.S. Healthcare ETF

Plus, First Trust launches ETF offering a new take on technology.

ETF Odds & Ends: iShares Sector ETFs To Be Updated

John Hancock Multifactor Media and Communications ETF

AT&T (T) and Discovery Communications (DISCA) have agreed to merge in a $43 billion deal, and form one of the largest global streaming players.

ETFs in Focus on AT&T-Discovery Mega Merger Deal

Lumen Technologies

Let's take a look at some big telecom earnings releases to see if these will impact ETFs exposed to the space.

Can Telecom ETFs Gain Despite Mixed Q1 Earnings?

We study the impact of a few big earnings releases in the telecommunications industry on ETFs with decent exposure to these companies.

News for iShares U.S. Telecommunications ETF ETF (IYZ)