Concentration Risk High as Top Two Stocks Steer U.S. Communication Services ETF Performance

The communication services sector is a concentration bet dressed up as diversification.

24/7 Wall Street • May 2, 2026

ETFs to Watch as Alphabet Rides Cloud Surge, Beats Estimates

Alphabet stuns with a 93% earnings beat as cloud and AI fuel growth, lifting shares and spotlighting ETFs with heavy exposure.

Zacks Investment Research • Apr 30, 2026

FCOM: An Overlooked Dividend Growth Opportunity With Big Tech Exposure

Fidelity MSCI Communications Services Index ETF (FCOM) earns a buy rating for its blend of growth and underappreciated dividend growth potential. FCOM's top holdings—META, GOOGL, GOOG, NFLX—drive both capital appreciation and future dividend growth, with nearly 50% portfolio weight in these mega-caps. Despite a modest 0.95% yield, FCOM's 3-year dividend growth CAGR exceeds 25%, and its 0.08% expense ratio enhances relative value versus peers.

Seeking Alpha • Apr 13, 2026

Fidelity Has a Pure Play ETF You Should Look at for 2026

The Magnificent Seven stocks represent 35% to 40% of the S&P 500, creating historically high concentration risk for investors heading into 2026.

24/7 Wall Street • Jan 9, 2026

FCOM: Communications Sector ETF Positioned For Durable Growth

Fidelity MSCI Communication Services Index ETF earns a 'Buy' rating for its strong growth potential and low expense ratio of 0.08%. FCOM's top holdings—Meta and Alphabet—drive performance, supported by resilient digital advertising revenue and robust user growth. Telecom giants AT&T, Verizon, and T-Mobile provide stability and attractive dividends, balancing the fund's high-growth tech exposure.

Seeking Alpha • Nov 12, 2025

Apple-Google Likely Tie-Up for Siri Revamp Puts These ETFs in Focus

Apple and Google's AI talks lift both stocks, putting ETFs like IYW, FTEC, FCOM and VOX, with heavy exposure to the tech giants, in focus.

Zacks Investment Research • Aug 26, 2025

Alphabet Hits an All-Time High: More Rally Ahead for ETFs?

Alphabet (GOOGL) hits record highs on AI & cloud momentum. Analysts see moderate upside; ETFs like FCOM, VOX, IXP, XLC & FNGS may gain from their strong exposure to GOOGL.

Zacks Investment Research • Aug 26, 2025

Communication ETFs Speak to Investors After Latest Earnings

Wednesday, July 23 came and went with another spate of earnings to report. While the still-hot theme of artificial intelligence (AI) living through big tech earnings may grab headlines, the communications sector specifically may also speak to investors.

ETF Trends • Jul 23, 2025

FCOM Has A Provable Alpha: Here's How

Fidelity MSCI Communication Services Index ETF: Competitive long-term performance, minimal expense ratio, and over 100 holdings. FCOM's heavy top-10 concentration makes it highly dependent on the risk and return of Meta and Google. In fact, it has an EPS growth of 15% and FCF growth of nearly 9%. With a forward P/E of 17x, it sets up a classic GARP investing scenario.

Seeking Alpha • Jun 19, 2025

Don't Forget to Rebalance Sector Exposures

Now is a great time for investors to consider their ideal asset allocation and rebalance portfolios accordingly. Investment weights in portfolios will change over time, as some investments may perform better than others.

ETF Trends • Jan 29, 2025