The telecommunication sector has bounced back from what was a difficult time for the ETFs exposed to the sector only a fortnight ago.
The week commencing 15 July saw the SPDR MSCI World Communications Service UCITS ETF (WTEL) and Xtrackers Stoxx Europe 600 Telecommunications Swap UCITS ETF (XSKR) net asset values (NAV) fall 1.9% and 1.6%, respectively. Since the slide, WTEL has jumped back up 3.8% as well as XSKR similarly rising 2.9%.
Being one of the biggest returners for last week, WTEL’s performance was aided by its top holdings, Facebook, Google and Disney, all seeing their share prices rebound to the second highest value year-to-date.
Following last weeks performance, XSKR’s YTD return is positive once again at 1.4% for the year so far. WTEL’s blue chip holdings have had a significantly positive 2019 and has meant the ETF’s YTD returns remain in the double digits at 20.8%.
In addition to the telecom ETFs bouncing back recently, funds with exposure to the US banking sector have also seen their NAV’s rally after having several dips this year so far.
The Lyxor S&P 500 Banks UCITS ETF (BNKU) saw its NAV fall 8.7% in May but has since had a significantly positive June and July. BNKU’s NAV has risen 3.8% last week boosting its YTD returns to 22.4%.