What are broad telecom ETFs?
These funds own companies that carry calls and data or fill screens with content. Most track the communication services sector, which puts phone and cable companies alongside internet, media and video game firms. A few stick to telecom in the narrow sense: carriers and network equipment makers. Of the 10 funds, 8 hold Comcast and T-Mobile US, and 7 hold Meta Platforms, Verizon, AT&T and Warner Bros. Discovery. Six hold Walt Disney and Alphabet, the parent of Google.
The largest funds are index funds, which copy a published list of stocks. XLC from State Street tracks the Communication Services Select Sector Index with 23 stocks. VOX from Vanguard holds 111, and Fidelity's FCOM, which tracks the MSCI USA IMI Communication Services 25/50 Index, holds 88. All three put about a fifth of their money in Meta and more than that in Alphabet's two share classes combined. IXP covers the same sector worldwide, including Tencent. IYZ is closer to classic telecom, with 22.6% in Cisco, and XTL spreads money across 40 stocks, the largest being Viasat at 4.4%.
Smaller funds take other routes. NXTG follows the Indxx 5G & NextG Thematic Index across 101 stocks worldwide, including chip makers Intel and Micron. RSPC weights S&P 500 communication stocks equally, FDCF is actively managed, and LTL is leveraged, aiming for twice the daily move of the S&P Communication Services Select Sector Index.
The median expense ratio, the yearly fee as a share of assets, is 0.37%. XLC charges the least at 0.08%, with FCOM at 0.084% and VOX at 0.09% close behind; LTL charges the most at 0.95%. The money is concentrated: as of October 29, 2026, 96.2% of the roughly $33.1 billion in these funds sat in the five largest, XLC, VOX, FCOM, IYZ and XTL.
Broad telecom ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 10 biggest broad telecom ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Comcast Corp | 8 of 10 | 3.1% |
| T-Mobile US Inc | 8 of 10 | 2.79% |
| Meta Platforms Inc | 7 of 10 | 16.6% |
| Verizon Communications Inc | 7 of 10 | 4.62% |
| AT&T Inc | 7 of 10 | 4.16% |
| Warner Bros Discovery Inc | 7 of 10 | 2.83% |
| Alphabet Inc | 6 of 10 | 13.02% |
| Walt Disney Co | 6 of 10 | 4.5% |
| Netflix Inc | 5 of 10 | 4.32% |
| Live Nation Entertainment Inc | 5 of 10 | 2.65% |
| Omnicom Group Inc | 5 of 10 | 2.5% |
| Arista Networks, Inc. | 4 of 10 | 3.38% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad telecom ETFs, side by side
Swipe the table to see all 5 funds.
| XLC | VOX | FCOM | IYZ | XTL | |
|---|---|---|---|---|---|
| Net assets | $22.26B | $5.93B | $1.73B | $1.24B | $712.2M |
| Expense ratio | 0.08% | 0.09% | 0.08% | 0.37% | 0.35% |
| Holdings | 23 | 111 | 88 | 24 | 40 |
| In the 10 largest | 76.12% | 70.72% | 70.97% | 69.49% | 34.06% |
| Biggest holding | Meta Platforms Inc (19.9%) | Meta Platforms Inc (20.54%) | Meta Platforms Inc (20.63%) | Cisco Systems, Inc. (22.59%) | Viasat Inc (4.41%) |
| Yield | 1.38% | 1.05% | 1.03% | 1.69% | 0.99% |
| 1-year return | -11.5% | -5.5% | -5.8% | +22.4% | +27.5% |
| 3 years, a year | +17.1% | +22.2% | +22.1% | +28.4% | +45.9% |
| 5 years, a year | +5.6% | +6.0% | +5.8% | +6.6% | +16.5% |
| Worst drop, past year | -16.1% | -13.6% | -13.5% | -15.8% | -24.9% |
| Launched | 2018 | 2004 | 2013 | 2000 | 2011 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 30, 2026.
Head to head
XLC vs VOX
Both are communication services funds led by Meta, at about 20% of each, and 77.2% of their assets overlap. XLC holds 23 stocks, with 76.1% in its top 10; VOX holds 111, with 70.7% in its top 10. Fees are almost identical: 0.08% for XLC and 0.09% for VOX. In the year to October 29, 2026, XLC lost 11.9% and VOX 5.5%, and XLC's worst drop was deeper, 15.0% against 13.6%. VOX also returned more over three and five years. XLC may suit investors who prefer a short list of stocks; VOX, those who want a wider spread.
VOX vs FCOM
These two are close to interchangeable: 93.7% of their assets overlap, and they share 85 stocks. VOX holds 111; FCOM, which tracks the MSCI USA IMI Communication Services 25/50 Index, holds 88. Each has about 20.5% in Meta and about 71% in its top 10. Fees barely differ: 0.09% for VOX, 0.084% for FCOM. In the year to October 29, 2026, VOX lost 5.5% and FCOM 5.8%, with worst drops of 13.6% and 13.5%. VOX may suit those who value its longer record, back to 2004; FCOM, those who prefer the slightly lower fee.
IYZ vs XTL
These two are closest to classic telecom but are built differently. IYZ holds 24 stocks, with 22.6% in Cisco Systems and 69.5% in its top 10. XTL holds 40; its largest, Viasat, is 4.4%, and its top 10 make up 34.1%. They share 16 holdings and 43.3% of assets. Fees are similar, 0.37% for IYZ and 0.35% for XTL. In the year to October 29, 2026, XTL gained 27.5% and IYZ 22.4%, but XTL's worst drop was deeper, 24.9% versus 15.8%. IYZ may suit investors comfortable with a few big positions; XTL, those who prefer money spread more evenly.
How much do the largest broad telecom ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VOX and FCOM | 93.7% | 85 | |
| XLC and FCOM | 80.6% | 22 | |
| XLC and VOX | 77.2% | 22 | |
| IYZ and XTL | 43.3% | 16 | |
| FCOM and IYZ | 21.5% | 15 | |
| VOX and IYZ | 21.3% | 13 | |
| XLC and IYZ | 18.5% | 6 | |
| VOX and XTL | 13.7% | 20 | |
| FCOM and XTL | 13.7% | 18 | |
| XLC and XTL | 11.3% | 4 |
From each fund’s full holdings in its latest N-PORT report.
How have broad telecom ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad telecom ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | NXTG First Trust Indxx NextG ETF | $563.9M | 0.7% | -3.6% | +41.5% | +38.9% | +34.9% |
| 2 | XTL SPDR S&P Telecom ETF | $712.2M | 0.35% | -5.8% | +27.6% | +27.5% | +45.9% |
| 3 | IYZ iShares U.S. Telecommunications ETF | $1.24B | 0.37% | -4.7% | +18.2% | +22.4% | +28.4% |
| 4 | FDCF Fidelity Disruptive Communications ETF | $101.1M | 0.5% | -3.4% | +4.2% | +0.7% | +28.4% |
| 5 | VOX Vanguard Communication Services ETF | $5.93B† | 0.09% | -8.2% | -7.3% | -5.5% | +22.2% |
| 6 | FCOM Fidelity MSCI Communication Services Index ETF | $1.73B | 0.08% | -8.2% | -7.5% | -5.8% | +22.1% |
| 7 | IXP iShares Global Comm Services ETF | $518.8M | 0.37% | -8.8% | -8.8% | -10.2% | +20.9% |
| 8 | XLC Communication Services Select Sector SPDR Fund | $22.26B | 0.08% | -10.0% | -14.4% | -11.5% | +17.1% |
| 9 | RSPC Invesco S&P 500 Equal Weight Communication Servic… | $55.8M | 0.4% | -3.6% | -13.4% | -13.1% | +12.1% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad telecom ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XLC | not yet launched | not yet launched | -38.7% |
| VOX | not yet launched | not yet launched | -39.8% |
| FCOM | not yet launched | -31.2% | -39.7% |
| IYZ | -58.6% | -26.2% | -37.5% |
| XTL | not yet launched | not yet launched | -24.6% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad telecom ETFs?
Several kinds of business sit inside these funds. Phone, cable and wireless companies such as Verizon, AT&T and Comcast collect steady monthly bills, but they spend heavily on networks and often carry large debts, so price wars and interest rates matter. Internet companies such as Meta and Alphabet rely mainly on advertising, which tends to rise and fall with the economy, while Netflix and Disney also depend on subscriptions. Equipment makers like Cisco and Arista depend on how much carriers and data centers spend. Regulation, from licenses for radio spectrum to antitrust cases, touches all of them.
That mix has shown up in past downturns. In the 2022 bear market, a long slide in stock prices, the three funds built around Meta and Alphabet fell furthest: XLC lost 38.7%, VOX 39.8% and FCOM 39.7%, against 24.5% for the S&P 500. IYZ fell 37.5%, while XTL, which spreads its money more evenly, fell 24.6%, about the same as the market. In the 2020 COVID-19 crash, IYZ fell 26.2% and FCOM 31.2%, less than the S&P 500's 33.7%. In the 2008 financial crisis, IYZ fell 58.6%, slightly more than the S&P 500's 55.2%.
Broad telecom ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XLC Communication Services Select Sector SPDR Fund | 0.08% | $8 a year | $22.26B |
| 2 | FCOM Fidelity MSCI Communication Services Index ETF | 0.08% | $8 a year | $1.73B |
| 3 | VOX Vanguard Communication Services ETF | 0.09% | $9 a year | $5.93B |
| 4 | XTL SPDR S&P Telecom ETF | 0.35% | $35 a year | $712.2M |
| 5 | IYZ iShares U.S. Telecommunications ETF | 0.37% | $37 a year | $1.24B |
Ordinary funds with at least $10 million in net assets. The median ordinary broad telecom ETF charges 0.37% a year; leveraged and inverse funds usually charge more.
Do broad telecom ETFs pay dividends?
9 of the 9 ordinary broad telecom ETFs with a page here paid distributions over the last 12 months, with a median yield of 1.2%.
| Highest yields | Yield | Net assets |
|---|---|---|
| IXP iShares Global Comm Services ETF | 3.58% | $518.8M |
| IYZ iShares U.S. Telecommunications ETF | 1.69% | $1.24B |
| XLC Communication Services Select Sector SPDR Fund | 1.38% | $22.26B |
| NXTG First Trust Indxx NextG ETF | 1.31% | $563.9M |
| RSPC Invesco S&P 500 Equal Weight Communication Se… | 1.2% | $55.8M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a broad telecom ETF
- Fees and fund size. XLC charges 0.08% a year and holds about $22.3 billion; FCOM (0.084%) and VOX (0.09%) cost about the same. XTL and IYZ charge 0.35% and 0.37%. Smaller funds like RSPC, with about $56 million, can cost more to trade.
- Internet giants or traditional telecom. XLC, VOX, FCOM and IXP lean heavily on Meta and Alphabet; Meta alone is about a fifth of XLC, VOX and FCOM. IYZ and XTL focus on carriers and network equipment makers such as Cisco, Verizon, Viasat and Ciena.
- Concentrated or spread out. XLC puts 76.1% of its money in its top 10 stocks, and IYZ has 22.6% in Cisco alone. XTL's top 10 make up 34.1%, and NXTG's just 17.6% across 101 stocks, so one company matters less.
- Index, equal weight or active. Most copy an index. RSPC gives each S&P 500 communication services stock an equal weight, and its largest, Roku, is 5.75%. FDCF is actively managed and can stray from the sector; Taiwan Semiconductor and Nvidia are among its largest holdings.
- US-only or global holdings. FCOM, IYZ and XTL track US-only indexes. IXP covers communication stocks worldwide, including Tencent, and NXTG holds companies such as Fujikura and United Microelectronics. FDCF's largest holding is Taiwan Semiconductor. Global funds add exposure to foreign markets and currencies.
- LTL is a 2x daily trading tool. LTL aims for twice the daily move of the index XLC tracks, resetting each day. Over longer periods returns can differ from 2x: it lost 26.3% in the year to October 29, 2026, versus 11.9% for XLC.
What are the risks of broad telecom ETFs?
- Heavy reliance on Meta and Alphabet. Seven of the 10 funds hold Meta, at a median weight of 16.6%, and six hold Alphabet, at 13.0%. Meta alone is about a fifth of XLC, VOX and FCOM, so one company's setback can drag the whole fund.
- IYZ leans on Cisco, Arista and Verizon. IYZ has 22.6% in Cisco, 11.0% in Arista Networks and 11.0% in Verizon, with 69.5% in its top 10. Trouble at any one of these companies would move the whole fund.
- Deep falls in market downturns. In the 2022 bear market, XLC, VOX and FCOM lost between 38.7% and 39.8%, against 24.5% for the S&P 500. IYZ fell 58.6% in the 2008 financial crisis, deeper than the S&P 500's 55.2%.
- Sharp swings in the narrower funds. In the year to October 29, 2026, XTL's volatility, a measure of how widely returns swing, was 30.9% and its worst drop 24.9%. IYZ and NXTG had volatility near 21%, against about 16% for XLC and IXP.
- Leveraged LTL magnifies gains and losses. LTL seeks twice the index's daily return and resets each day, so over months results can differ from 2x. It lost 26.3% in the year to October 29, 2026, with a 28.8% worst drop and 32.8% volatility.
Leveraged and inverse broad telecom ETFs (2x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
| Fund | Daily aim | Net assets | 1-year return |
|---|---|---|---|
| LTL ProShares Ultra Communication Services | 2× | $6.3M | -26.3% |
List of all broad telecom ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLC Communication Services Select Sector SPDR Fund | $22.26B | 0.08% | 1.38% | -14.4% | -11.5% | +5.6% |
| 2 | VOX Vanguard Communication Services ETF | $5.93B† | 0.09% | 1.05% | -7.3% | -5.5% | +6.0% |
| 3 | FCOM Fidelity MSCI Communication Services Index ETF | $1.73B | 0.08% | 1.03% | -7.5% | -5.8% | +5.8% |
| 4 | IYZ iShares U.S. Telecommunications ETF | $1.24B | 0.37% | 1.69% | +18.2% | +22.4% | +6.6% |
| 5 | XTL SPDR S&P Telecom ETF | $712.2M | 0.35% | 0.99% | +27.6% | +27.5% | +16.5% |
| 6 | NXTG First Trust Indxx NextG ETF | $563.9M | 0.7% | 1.31% | +41.5% | +38.9% | +16.6% |
| 7 | IXP iShares Global Comm Services ETF | $518.8M | 0.37% | 3.58% | -8.8% | -10.2% | +7.0% |
| 8 | FDCF Fidelity Disruptive Communications ETF | $101.1M | 0.5% | 0.06% | +4.2% | +0.7% | — |
| 9 | RSPC Invesco S&P 500 Equal Weight Communication Servic… | $55.8M | 0.4% | 1.2% | -13.4% | -13.1% | — |
| 10 | LTL ProShares Ultra Communication Services Leveraged | $6.3M | 0.95% | 1.35% | -26.7% | -26.3% | +13.3% |
Questions investors ask about broad telecom ETFs
What is the largest telecom ETF?
XLC, the Communication Services Select Sector SPDR Fund from State Street, is the largest, with about $22.3 billion in assets. VOX from Vanguard is next at about $5.9 billion, then Fidelity's FCOM at about $1.7 billion. All three are communication services funds led by Meta Platforms and Alphabet. The largest fund focused on traditional telecom is IYZ, the iShares U.S. Telecommunications ETF, at about $1.2 billion.
How many telecom ETFs are there?
This guide covers 10 US-listed ETFs with about $33.1 billion in total. Most are communication services funds, such as XLC, VOX, FCOM and the global IXP. IYZ and XTL focus on carriers and network equipment, NXTG follows a 5G theme, RSPC weights stocks equally, and FDCF is actively managed. One, LTL, is leveraged. As of October 29, 2026, the five largest held 96.2% of the money.
What is the cheapest telecom ETF?
XLC has the lowest expense ratio, 0.08% a year. The expense ratio is the annual fee, taken as a share of the money invested. FCOM charges 0.084% and VOX 0.09%, so all three are close. Funds focused on traditional telecom cost more: XTL charges 0.35% and IYZ 0.37%. The median across the group is 0.37%, and the leveraged LTL is the most expensive at 0.95%.
XLC vs VOX: what's the difference?
Both are low-cost communication services funds with about a fifth of their money in Meta Platforms, and 77.2% of their assets overlap. XLC from State Street holds 23 stocks and charges 0.08% a year. VOX from Vanguard holds 111 and charges 0.09%, so it spreads further beyond the biggest names. In the year to October 29, 2026, VOX lost 5.5% and XLC 11.9%. Neither is a pure telecom fund: both also own internet and entertainment companies such as Alphabet and Netflix.
Do telecom ETFs pay dividends?
Yes. All nine funds with dividend data pay one, and the median yield was 1.2% as of October 29, 2026. Yield is roughly a year of dividends as a share of the fund's price. IXP, the global fund, had the highest at 3.58%, followed by IYZ at 1.69% and XLC at 1.36%. VOX yielded 1.05% and XTL 0.99%.
Do telecom ETFs hold Verizon and AT&T?
Most do. Verizon and AT&T each appear in 7 of the 10 funds, at median weights of 4.62% and 4.16%. IYZ has the largest Verizon stake, 10.97%, while VOX and FCOM each hold about 4.8%. FCOM has 4.51% in AT&T. T-Mobile US and Comcast are even more widely held, at 8 funds each. In the biggest funds, though, these carriers rank well behind Meta Platforms and Alphabet.
How have telecom ETFs performed?
Results split sharply. In the year to October 29, 2026, NXTG gained 38.9%, XTL 27.5% and IYZ 22.4%, while XLC lost 11.9% and RSPC 13.1%. The median fund lost 5.5%. Funds built around Meta and Alphabet lagged those holding network equipment and 5G suppliers. XTL and NXTG also led over three and five years. Past returns do not predict future ones.
Is there a leveraged telecom ETF?
Yes, one: LTL, ProShares Ultra Communication Services. It aims for twice (2x) the daily return of the S&P Communication Services Select Sector Index, the same index XLC tracks. Because LTL resets every day, its results over months can differ from twice the index. It lost 26.3% in the year to October 29, 2026, against 11.9% for XLC. With a 0.95% fee and about $6.3 million in assets, it is a short-term trading tool rather than a long-term holding. There is no inverse fund in this group.
Is there a Vanguard, Fidelity or Schwab telecom ETF?
Yes. Vanguard offers one: VOX (Vanguard Communication Services ETF). Fidelity offers 2: FCOM (Fidelity MSCI Communication Services Index ETF), FDCF (Fidelity Disruptive Communications ETF). Schwab doesn’t have a telecom ETF.
