iShares U.S. Telecommunications
ALTAR
Score™
8.1% info Recommen-
dation
SPECULATIVE
2019E    2020E
P/E
ratio
14.6x P/Sales
ratio
1.6x
P/BV
ratio
2.0x Div.
yield
3.0%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The iShares U.S. Telecommunications Sector Index Fund seeks investment results that generally correspond price and yield performance, before fees and expenses, of U.S. telecommunications stocks, as represented by the Dow Jones U.S. Select Telecommunications Index.

FUND BASICS
Category US Equities
Fund Sponsor Barclays Global Investors
Website www.ishares.com
Inception date May 26, 2000
Assets (mns) $376
Currency USD
Expense ratio 42 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian State Street Bank & Trust
Weighting Market Cap
Index replication Optimized
Uses derivatives No
Options available Yes

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 42
Wgt avg mkt cap (mns) $134,888
Large cap (>$10bn) 69.7%
Mid cap ($2-10bn) 27.3%
Small cap (<$2bn) 3.0%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
AT&T INC 23.1 %
VERIZON COMMUNICATIONS INC 22.4 %
CENTURYTEL INC 4.9 %
GARMIN LTD 4.7 %
T-MOBILE US, INC. 4.6 %
MOTOROLA SOLUTIONS 4.5 %
CISCO SYSTEMS INC 4.4 %
ARISTA NETWORKS, INC. 3.5 %
JUNIPER NETWORKS INC 3.1 %
F5 NETWORKS INC 3.0 %
Total 78.3 %

TOP COUNTRY EXPOSURE
UNITED STATES 95.3 %
SWITZERLAND 4.7 %









HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru October 31)
Year-to-date 1 year 5 years 10 years Since Incep.
15.0% 7.5% 2.0% 8.4% -0.8%

Market Correlations
versus... Beta R-squared
S&P500 0.80 45%
MSCI EAFE 0.74 32%
MSCI Emg. Mkts. 0.41 16%

Technical Indicators
Recent close $29.94
30d moving avg. $29.26
Annualized volatility 14.5%
Short interest (ETF) 0.0%
Short interest (Underlying) 5.2%
Relative strength (RSI) 57

Liquidity measures
Avg. volume (thou.) 397
Turnover 3.2%
Bid/Ask (% of price) 0.04%
ADV underlying (mns) $3,994

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the iShares U.S. Telecommunications ETF based on the alternatives' overlap in portfolio holdings with IYZ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: IYZ Expense: 42 bp ALTAR Score™: 8.1%


ALTERNATIVE ETFs BASED ON OVERLAP WITH IYZ
Ticker Fund
Name
Overlap1
vs IYZ
(%)
Expense
ratio
(bp)
Savings
vs IYZ
(bp)
ALTAR
Score™
(%)
ALTAR
vs IYZ
(%)
XTL SPDR S&P Telecom 49.0 35 7 5.2 -2.8
IGN iShares S&P N. American Tech- MM & Networking 30.0 46 -4 6.6 -1.5
JHCS John Hancock Multifactor Media & Communications 21.0 40 2 6.3 -1.8
HDV iShares High Dividend 19.8 8 34 6.6 -1.5
FIVG Defiance Next Gen Connectivity ETF 19.4 30 12 6.1 -2.0
FXU First Trust Utilities Alphadex 18.9 63 -21 5.3 -2.8
FCOM Fidelity MSCI Communication Services 18.6 8 34 5.2 -2.9
PXQ Invesco Dynamic Networking 18.5 63 -21 4.1 -4.0
EWCO Invesco S&P 500 Equal Weight Comm. Services 18.4 40 2 7.9 -0.2
VOX Vanguard Communication Services 18.1 10 32 5.4 -2.7
FDL First Trust Morningstar Dividend Leaders 16.6 45 -3 8.6 +0.5
XLC Communication Services Select Sector SPDR 14.1 13 29 6.5 -1.6
IXP iShares S&P Global Comm. Services 13.1 46 -4 6.4 -1.7
BUL Pacer US Cash Cows Growth 12.9 60 -18 5.4 -2.7
FONE First Trust Cea Smartphone 12.3 70 -28 6.3 -1.8
FDN First Trust DJ Internet 11.3 52 -10 3.4 -4.7
JKF iShares Morningstar Large Value 11.0 25 17 7.7 -0.3
CIBR First Trust NASDAQ Cybersecurity 10.5 60 -18 3.6 -4.5
TDIV First Trust NASDAQ Technology Dividend 10.5 50 -8 6.6 -1.5
VLUE iShares MSCI USA Value Factor 10.4 15 27 10.9 +2.8

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
iShares U.S. Telecommunications
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity 15.5 %
Divided by: Fwd. P/BV 1.8 x
Less: Expense ratio 42 bp
Equals: ALTAR Score 8.1 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.62 CATEGORY
AVERAGE
1.55
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.