The communication services sector of the S&P 500 is doing one thing it hasn’t done since late October 2016: Beat its parent index.
In fact, since 2017, the S&P 500 has returned 10.8% compared to the sector’s return of just 8.9%.
But if you look at the indexes year-to-date, you will see that the communication services sector is now beating the returns of the S&P 500.
The sector returns are 10.8% compared to the S&P 500’s returns of just 5.2%.
The S&P 500 Communication Services Sector SPDR ETF (NYSE: XLC) — an exchange-traded fund tracking some of the biggest communication stocks — jumped more than 52% since reaching a low in March 2020.
It’s around 6% above its previous high set back in January 2020. The ETF reached a high of $65.14 per share on Sept. 2 — a 62% increase from that March low.
The ETF holds companies including Facebook Inc. (Nasdaq: FB), Alphabet Inc. (Nasdaq: GOOG) — the parent to Google — and T-Mobile US Inc. (Nasdaq: TMUS).
Communication Services ETF On a Tear
In this episode of The Bull & The Bear, I talk with Money & Markets Chief Investment Strategist Adam O’Dell and contributor Charles Sizemore about three tech communications sector stocks.
We’ll examine what each of these three companies do and how they’ve performed recently.
What’s even better is you’ll get insight on what you should do with these three companies — if you are thinking about buying or already have them in your portfolio.
Remember, knowing the data and the details about a specific company helps you determine whether it is worth investing in.
That’s why we do the work for you by looking that these specific stocks and give our analysis on each one.
The Bull & The Bear
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Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.