Should You Buy Vanguard's Hottest Sector-Based ETF?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
0mins
Source: NASDAQ.COM
- Vanguard Communication Services ETF Performance: The Vanguard Communication Services ETF (VOX) has shown impressive growth, up 13.6% this year, with Alphabet and Meta Platforms making up 45% of the ETF.
- Disruption in Communications Sector: The communications sector has been significantly disrupted by technological advancements like mobile phones, streaming services, cloud-based advertising, and digital media, creating growth opportunities.
- Sector Attractiveness: The communications sector offers a balance of fast-growing companies and traditional stalwarts, providing growth, value, and income opportunities for investors.
- Investment Considerations: Despite recent high gains, Alphabet and Meta Platforms remain reasonably valued with forward P/E ratios below 24, making them attractive investments in the sector.
- Future Trends: Emerging technologies such as artificial intelligence, virtual reality, and the metaverse are expected to impact the communications sector positively in the long term, making it an appealing investment option.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
