Optical Fiber and 5G, here is the ETF that gains over 40% in 2023

The world of telecommunications is the beating heart of global progress.
Communication networks are key to economic development and innovation, connecting regions and sectors.
With the rise of 5G and the promise of 6G, along with the rise of fiber optics for high-speed access, the telecommunications industry is experiencing an unprecedented transformation.
In this article, we will explore an ETF that has seen a remarkable 40% increase year-to-date, providing an opportunity to better understand the future of telecoms.
Continue reading to discover the characteristics of this ETF.
S&P 500 Communication Sector UCITS ETF USD (Acc) The iShares S&P 500 Communication Sector UCITS ETF USD (Acc) is a passively managed exchange traded fund (ETF) designed to track the performance of the S&P 500 Capped 35/20 Index Communication Services.
This ETF offers investors the opportunity to invest in a broad spectrum of companies operating in the communications and media sector in the United States.
This in-depth review will examine various aspects of this fund, from its structure and costs to portfolio composition and past performance.
Structure and Costs The iShares S&P 500 Communication Sector UCITS ETF USD (Acc) has a total expense ratio (TER) of 0.15% per annum.
This indicates that the ETF's management costs are relatively low compared to other similar funds.
The TER represents the amount investors must pay each year to hold the ETF.
With a TER of 0.15%, investors should not be burdened with excessive burdens.
The ETF uses a full physical replication strategy.
This approach aims to closely track the performance of the index and give investors direct exposure to the stocks included in the index.
Any dividends generated by shares in the ETF are accumulated and reinvested in the ETF, which can contribute to the long-term growth of the investment.
read also How to invest in Megatrends with ETFs Fund Size and History Currently, the iShares S&P 500 Communication Sector UCITS ETF USD (Acc) manages assets of approximately 150 million euros.
This fund size is significant and indicates that the fund is well established in the market.
The ETF was launched on 17 September 2018 and is domiciled in Ireland.
This ETF therefore has a history of almost five years, which can be useful for investors who want to evaluate the fund's past performance and experience in the market.
Portfolio Composition One of the most important characteristics of an ETF is its portfolio composition.
The iShares S&P 500 Communication Sector UCITS ETF USD (Acc) has a heavy concentration in the top 10 holdings, representing 90.87% of the overall portfolio.
Among the major holdings in the ETF's portfolio, Alphabet Inc.
companies (with two share classes) represent the largest share, with a weighting of 18.70%.
Meta Platforms Inc.
follows closely behind, with a 17.69% weighting, while Alphabet Inc.
(Class C) represents 16.23% of the portfolio.
Other notable holdings include Comcast Corp with 7.94% and Netflix Inc with 7.87%.
Geographically, 99.60% of the portfolio is invested in the United States, reflecting the nature of the US communications sector.
Performance and Risk ETF performance is a key consideration for investors.
Over the past year, the iShares S&P 500 Communication Sector UCITS ETF USD (Acc) has returned a solid +36.09%.
This suggests that the ETF has performed well for investors in the short term.
However, it is important to note that the 1-year volatility of the ETF is 23.49%, therefore, investors should be prepared for fluctuations in the ETF's value while holding.
The maximum 1-year drawdown, which represents the maximum loss experienced by the ETF over a 12-month period, was -11.58%.
This suggests that despite price fluctuations, the ETF has been able to recover from periods of decline.
Our Conclusions In conclusion, the iShares S&P 500 Communication Sector UCITS ETF USD (Acc) offers investors an efficient and relatively cheap way to gain exposure to the communications and media sector in the United States.
With a competitive TER, significant fund size and good historical performance, it could be an attractive choice for those seeking this exposure.
However, the ETF's volatility means it is subject to significant price fluctuations in the short term, so investors should carefully consider their risk profile and objectives before investing.
read also 4 ETFs to monitor in November 2023 Disclaimer The information and considerations contained in this article should not be used as the sole and main support on which to make investment decisions.
The reader maintains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.