What Is the IYZ ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A leading sector ETF that invests in major US telecommunications services and infrastructure companies, pursuing dividend income and industry growth at the same time.
SubscribeWhat Is This ETF?
It tracks a representative index of US telecommunications services companies and builds its portfolio mainly around large US telecom stocks. It fully reflects the characteristics of the telecom sector, where a handful of dominant companies hold the market.
By investing in large telecom stocks that generate stable cash flow, it suits investors who want regular dividend income along with growth driven by technological progress.
It is a passively managed (index-tracking) ETF launched by iShares in 2000.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | Russell 1000 Telecommunications Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.37% |
It is market-cap weighted by default, but applies regulatory capping to prevent excessive concentration in any single stock. It adjusts exposure within the sector by evenly including wireline and wireless telecom service providers as well as telecom equipment and systems suppliers.
- Long track record of management focused on the US telecom sector
- Portfolio concentrated in a small number of core companies
Size and Costs
Assets under management (AUM) stand at $697.9M, and the expense ratio is 0.37% per year.
The telecom sector traditionally has the strengths of high barriers to entry and stable dividends, and it also benefits from the expansion of technological infrastructure.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeSupported by the wider rollout of 5G networks and rising data demand, it has posted steady results, and its share price shows a mix of defensive characteristics and growth themes.
Along with shifts in the relative appeal of dividend stocks as the interest rate environment changes, fund inflows tend to react sensitively to news of large-scale US government investment in telecom infrastructure.
Pros and Cons
You can expect a stable earnings structure and dividends, but concentration in a small number of companies is very high and the fund is exposed to regulatory risk.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
Among the options shown in the table, VFH and IYF are alternatives focused on the financial sector, VIS on the industrials sector, and ONEQ covers the Nasdaq market as a whole. If you want broader communication services exposure, you could consider XLC or VOX, which blend media and IT, and if you want to expand into global telecom stocks, IXP is also worth reviewing.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VFH | Vanguard Financials ETF | $139.43 | -2.8% | $13.9B | 0.09% | 1.69% | +8.8% |
 ONEQ | Fidelity Nasdaq Composite Index ETF | $95.84 | -5.6% | $10.6B | 0.21% | 0.54% | +3.7% |
 VIS | Vanguard Industrials ETF | $310.98 | -4.3% | $7.8B | 0.09% | 0.99% | +4.8% |
 IYF | iShares U.S. Financials ETF | $132.85 | -2.8% | $3.9B | 0.37% | 1.46% | +7.8% |
 FV | First Trust Dorsey Wright Focus 5 ETF | $69.25 | -5.1% | $3.8B | 0.89% | 0.38% | +13.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| CSCO | Cisco Systems Inc | 0.42% | $95.72 | -7.6% | $376.8B | 28.8 | 1.78% |
| VZ | Verizon Communications Inc | 0.24% | $46.12 | -0.1% | $191.1B | 11.8 | 6.12% |
| T | AT&T Inc | 0.17% | $21.82 | -0.1% | $147.0B | 11.8 | 5.09% |
| ANET | Arista Networks Inc | 0.15% | $159.16 | -10.8% | $200.7B | 42.7 | - |
| CIEN | CIENA Corp | 0.04% | $230.81 | -15.2% | $32.7B | 51.5 | - |
| TMUS | T-Mobile US Inc | 0.04% | $160.59 | +0.9% | $170.1B | 15.5 | 2.6% |
Investor Checkpoints
IYZ is a sector product with a portfolio concentrated in a small number of core companies, so before deciding to invest, please use the following checklist to carefully review concentration risk and dividend stability.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📊 Holdings Concentration | Weight of top large-cap stocks and awareness of volatility impact | High level |
| 💵 Dividend Yield | Review past dividend history and likelihood of future payments | Sustained |
| 📡 Infrastructure Investment | Check adoption of next-generation technology such as 5G and the cost burden | Ongoing |
| 💸 Expense Ratio | Cost level compared with other ETFs in the same sector | Needs checking |
The telecom sector can be more sensitive to policy and market share competition than to technological shifts. Keep in mind that a particular company's earnings release or merger news can increase volatility across the entire sector.
It is a sector product suited to investors who want to share in both the stability and the growth potential of the US telecom industry. It is a useful choice for those who want steady income while strengthening the defensive character of their portfolio.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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