Vanguard Communication Services ETF

VOX

Market cap $6.28B

Alphabet Inc (NASDAQ: GOOGL)(NASDAQ: GOOG) could be heading for another earnings tailwind — and investors in ETFs may feel this before they realize why.

With the end of 2025 right around the corner, now is an ideal for investors to evaluate opportunities for 2026 and position accordingly. Of course, it's human nature to look for home runs -- assets that deliver massive returns in short order.

VZ and T beat earnings estimates. Also, powered by AI optimism and rate-cut hopes, the sector is poised for a rally.

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.

Investment management firm Vanguard offers 11 low-cost exchange-traded funds (ETFs) that mirror the performance of each stock market sector.

A better grasp of the current tariff situation and a generally strong earnings season have helped the market rally in recent weeks, with the major indexes all recovering significantly from losses earlier this year.

After a volatile April, Wall Street has stepped into the defamed May. While many may want to sell this month, some specific ETFs are likely to rise.

The 'Undercovered' Dozen series highlights lesser-known ETFs featuring in-depth analyses and offering unique investment opportunities for investors. The Mount Lucas Managed Futures Index Strategy ETF, Columbia India Consumer ETF, SPDR EURO STOXX 50 ETF, and Global X MSCI Greece ETF are recommended buys due to their strategic advantages and market positions. Invesco Dorsey Wright Industrials Momentum ETF and CoinShares Bitcoin Miners ETF receive hold ratings due to sector-specific challenges and concerns about diversification and expense ratios.

The S&P 500 (SNPINDEX: ^GSPC) is widely considered the best gauge for the overall U.S. stock market due to its scope and diversity. It measures the performance of 500 large-cap companies across all 11 stock market sectors.

After being the best-performing stock market sector in 2024, communications is getting a curtain call in 2025. Year to date, communications is, yet again, the top performer of the 11 stock market sectors.