Telecom is a market sector that needs large investments in order to be profitable. The little companies just don’t survive. If these little ones have a viable business model they will be overtaken by the larger players.
Eventually a market will evolve where the infrastructure has been paid for. More importantly the market will evolve in a situation where only a few large players will dominate. If all debts and takeover bids are being paid off then a situation will emerge where they can rake in huge profits.
In my opinion this telecom ETF still has fine opportunities to offer. The hype of recent years has abided so there will be chances to enter the market.
Lyxor STOXX Europe 600 Telecommunications UCITS ETF
Telecommunications is a major industry in Europe. This Lyxor Telecom ETF is tracking the STOXX Europe 600 Telecommunications Net Return index.
Within this telecom ETF you will find 20 publicly traded telecommunications companies where Vodafone is the leading one with a 20% share. Telefonica comes in second with a 15% share. Deutsche Telecom and BT group both have a share of 5%.
Geographically speaking the United Kingdom is the largest supplier here with a share of 40%. Then you will find Germany with 15% and Spain with a share just under 15%.
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Lyxor STOXX Europe 600 Telecommunications UCITS ETF info:
ETF provider: Lyxor (Societe Generale)
Exchange: Euronext Parijs
This Lyxor STOXX Europe 600 Telecommunications UCITS ETF has quotations on different exchanges and is known under several ticker symbols. As long as the ISIN number is identical you are dealing with the same ETF.