Fidelity MSCI Communication Services Index ETF

FCOM

Market cap $1.8B

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.

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.

Look at telecom ETFs as companies report fourth-quarter 2024 earnings.

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.

With the end of the year on the horizon, investors often reflect on insights from the market's performance. Three ETFs from Fidelity Investments can offer some notable takeaways as they are likely to end 2024 as the firm's top ETF performers.

ETFs offer all kinds of benefits, from tax efficiency to transparency, but perhaps their greatest benefit stems from their ability to serve as building blocks. Sector ETFs, for example, can help investors create an equity allocation that matches their own investment theses about certain sectors.

Fidelity MSCI Communication Services ETF owns a portfolio of 25 U.S. communication services stocks with a low expense ratio of 0.08%. FCOM has almost recovered to a previous peak in 2021 and has a bright long-term growth outlook. The fund has higher volatility and downside risk.

According to studio estimates on Sunday, Disney's "Inside Out 2" movie hauled in $100 million in ticket sales in its second weekend. The film has earned the title of 2024's highest-grossing film to date.

On Apr 26, 2024, Google-parent Alphabet (GOOGL) officially joined the prestigious $2 trillion club. There are more room for growth.

Look into ETFs with heavy exposure to Alphabet as the tech giant reports better-than-expected first-quarter 2024 results and also announces a cash dividend with plans to uphold a quarterly cash dividend distribution policy.