Why Tech Investors Should not Ignore These ETFs

This is the most important week of the second quarter earnings season with 180 S&P 500 companies reporting. Earnings reports from the biggest names on Wall Street including Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (NASDAQ:GOOGL) (GOOG), Amazon (AMZN) and Facebook (NASDAQ:FB) (FB) are expected this week.

Two of those giants, Google and Facebook are not included in the technology sector but are a part of the communication services sector. This sector was created about three years back, following a major reshuffling in the Global Industry Classification Standard (GICS), which is used by major index providers including S&P Dow Jones and MSCI.

Communication services is one of the top performing sectors this year with a gain of about 24%. Excellent results reported by Snap (SNAP) and Twitter (TWTR) reaffirmed continued growth in the digital ad market and have raised hopes for Facebook and Google results.

The Communication Services Select Sector SPDR Fund (XLC) and Fidelity MSCI Communication Services Index ETF (FCOM) are market cap weight ETFs with outsized exposure to the two giants in the space. The Invesco S&P 500 Equal Weight Communication Services ETF (EWCO) follows an equal-weighted index.

Please watch the short video above to learn more about these ETFs.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.