Telecommunications ETFs aim to tap 5G

Article Excerpt

Telecommunications form an integral part of economic infrastructure. At the same time, strict licensing standards and high capital requirements result in considerable barriers to entry for any firms trying to enter the industry. That helps explain why top telecommunication companies—plus the firms that supply their equipment or use their services for streaming and so on—continue to offer attractive prospects in growing markets. Below we take a look at two ETFs that hold companies involved in various aspects of the telecommunications industry. As well, the Supplement on page 99 delves deeper into the rollout of 5G infrastructure and services. BMO GLOBAL COMMUNICATIONS ETF $23.79 (Toronto symbol COMM; TSINetwork ETF Rating: Aggressive; Market cap: $21.7 million) tracks the Solactive Media and Communications Index. Stocks that qualify for inclusion are weighted based on their market capitalization. Individual stock weights cannot exceed 10% of the portfolio on the semi-annual rebalancing dates. The bulk of the fund holdings are in the U.S. (69% of assets), followed by Japan (9%), the…

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