Communication Industry ETF

An ETF is an exchange-traded fund. ETFs can be diversified, like a mutual fund...or narrow, like a tight sector fund (there are more ETFs than stocks).

The key difference between an ETF and an Index Fund? ETFs are closed; they don’t adjust assets to comply with a given index range. Like “this index fund shall own between 7 and 10 percent Crapburger Airline stocks.”

ETFs trade like stocks. A communications ETF would invest in companies in the communications/telecommunications sector, so it could be a large, mid, or small cap ETF. Companies like AT&T, Verizon, Qualcomm, Apple, and other behemoths would comprise the large cap part of this ETF, for example.