This is the most important week of the second quarter earnings season with 180 S&P 500 companies reporting. Earnings reports from the biggest names on Wall Street including Apple (
AAPL
), Microsoft (
MSFT
), Google parent Alphabet (
GOOG
), Amazon (
AMZN
) and Facebook (
FB
) are expected this week.
Two of those giants, Google and Facebook are not included in the technology sector but are a part of the communication services sector. This sector was created about three years back, following a major reshuffling in the Global Industry Classification Standard (GICS), which is used by major index providers including S&P Dow Jones and MSCI.
Communication services is one of the top performing sectors this year with a gain of about 24%. Excellent results reported by Snap (
SNAP
) and Twitter (
TWTR
) reaffirmed continued growth in the digital ad market and have raised hopes for Facebook and Google results.
The Communication Services Select Sector SPDR Fund (
XLC
) and Fidelity MSCI Communication Services Index ETF (
FCOM
) are market cap weight ETFs with outsized exposure to the two giants in the space. The Invesco S&P 500 Equal Weight Communication Services ETF (
EWCO
) follows an equal-weighted index.
Please watch the short video above to learn more about these ETFs.
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