IXP Global Communications Services Sector ETF From Buy To Hold After Alphabet's Surge
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Joris Gijzendorffen489 FollowersFollow5ShareSavePlay(17min)CommentsSummaryThe iShares Global Communications Services Sector ETF (IXP) is now rated 'hold' after a steep run-up of Alphabet's shares.IXP's top holdings, primarily Alphabet shares, have benefited from AI, but the good performance is now less likely to persist with Alphabet's valuation at the higher end.Concentration risk is elevated in IXP due to heavy weighting in two large-cap names, Alphabet and Meta, limiting the case for overweighting the sector.I recommend allocating new available funds outside the IXP ETF, either within the sector in investments that are not included in the IXP ETF or in other sectors entirely. peshkov/iStock via Getty Images Outstanding Recent Returns On Investments In The Communications Services Sector The choice of the sector in which to invest makes a big difference for possible returns. Choosing sectors that have seen strong returns as opposed toThis article was written byJoris Gijzendorffen489 FollowersFollowTMT sector professional. Over 20 years of experience working in the sector in Europe and outside Europe. Decade of investing experience to keep in close touch with companies and themes that are relevant for my work. Education in Corporate Finance.Companies where I worked are among others: KPN, Chellomedia, Liberty Global, UPC Cablecom Switzerland, Get Sweden, Ooredoo Middle East, Cell C South Africa, Du Dubai, Axiata South East Asia, Celcom Malaysia, Vodafone.Analyst’s Disclosure:I/we have a beneficial long position in the shares of LBRDP, BGAOY, TV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.