Epic starting may be a surprise as the red stocks like Nvidia,, Broadcoand Palantir Technologies Everyone is in the technological sector. But communications have some advantages that could help the sector to continue surpassing the main indexes like S & P 500.
AND Vanguard of communication services Fund that trades it on the stock market (ETF) (NYSEMKT: VOX) is a simple, inexpensive way to invest in the sector. With only 0.09% of the cost ratio or 90 cents for each investment in the amount of $ 1,000, the fund is a cheap way to mirror the performance of the communication sector.
Here’s what drives the sector up to new heights and why ETF for communications by Vanguard could be worth buying now.
Picture source: Getty Images.
Nearly half of the communication sector is in Meta platform(Nasdaq: Meta) and Alphabet(Nasdaq: Goog)(Nasdaq: Googl). Although it is common for a handful of companies to be grated, no other sector is concentrated in just two companies as communications.
Vanguard sector ETF
The best two possessions
Award in the first two possessions
Vanguard Communications ETF
Meta platform and alphabet
48.5%
Vanguard Consumer Discretion ETF
Amazon and Tesla
40.8%
Vanguard Energy Etf
ExxonMobil and Shevron
34.4%
Vanguard Information Technology ETF
Apple and Nvidia
30.7%
Vanguard Consumer Staples Etf
Costco wholesale and Walmart
27.2%
Vanguard materials etf
Linda and Sherwin-Williams
21.9%
Vanguard Health Care Etf
Eli Lilly and Unitedhealth Group
18.6%
Vanguard utilities etf
Nexter Energy and Confidential energy
18.4%
Vanguard Financial Etf
Jpmorgan chase and Berksshire Hathaway
16.5%
Vanguard real estate etf
Proologis and American tower
11.6%
Vanguard industrials etf
GE aerospace and Caterpillar
7.2%
Data source: Vanguard Group.
Although the Vanguard Communication Services ETF has a 117 stake, it is not so diverse when viewed in the weights of top stakes. Moreover, 11.8% of the fund is in media giants Netflix,, Walt Disneyand Comcast. 10.4% of the Fund is in telecommunications companies AT&T,, Communication Verizonand T-mobile.
Add everything, and the fund is basically betting a large number of companies.
The whole size of the meta platform and alphabet shows how valuable social media has become in relation to traditional communication companies. Stock estimates aside, targets and alphabets probably have two best business models on the planet.
Google Services, which include YouTube ads, Google Network, Google Network, Google Subscribers, Platforms and Devices, earned $ 304.93 billion in 2024 revenues and $ 121.27 billion in operational revenue for operating margin of 39.8%.
This is not even a Google Cloud factor, which is the alphabetical fastest growing segment on revenue. However, the segment is currently low, as the alphabet pours investment dollars in the construction of capacity to go in step with the Amazon Web Services and Microsoft Azure.
For comparison, the Meta Platforms Family (Instagram, Facebook, WhatsApp, etc.) recorded $ 164.5 billion in 2024 revenue and 87.1 billion USD operating revenue – for a 53%operating margin.
Alphabet and the target have such a high margin because of the nature of the capital light of their advertising models. Netflix, Disney and Comcast consume billions every year producing content. Telecom companies must invest and maintain physical infrastructure and user services programs.
Alphabet and the target do not have high operational costs, which allows them to turn more sales into profit. The main costs are the work and maintenance of their platforms. Content creators on YouTube and Instagram are basically doing a job for them. It is a completely different business model from trying to create content in the hope that the audience gets well.
High margins allow both companies to support huge research and development programs, buying stocks and (last year) pay dividends. In 2025. The target invests $ 65 billion in capital expenditures (Capex) – mainly on artificial intelligence (AI) – to increase engagement on its platforms and allow advertisers to run more precise campaigns. Its (very unprofitable) division of laboratories for reality invests in software and hardware for virtual and extended reality. But, again, the target can afford these investments because the job of the ad is so strong.
Alphabet has installed AI functionality in Google Search and scelling cloudy infrastructure. Predicts a whopping $ 75 billion in 2025. Despite myriad of advantages, the alphabet has a price ratio of price and earnings (P/e) of only 20.4, compared to 28.4 for the meta platform. However, advertising the meta grows faster and is probably better than Alphabet, so the premium estimate makes sense.
However, both sections have lower p/es than many other mega-kap technical names. And this is a factoring in the meta -huge gain of 245% in the last three years.
Investing in the communication sector is a big bet on alphabet and meta platform, which is why most of this discussion is focused on these two stocks. Despite the peak of the 2024 sector, and so far in 2025, both sections have reasonable assessments and strong prospects for growth, suggesting that they can continue to be worth buying.
As long as both supplies continue to increase strongly, the Vanguard Communication Services ETF can continue to surpass the S&P 500. ETF is a good bet if you are interested in the alphabet and the target and you want some diversification beyond those two supplies. ETF has a 1% yield and a ratio of 23 p/e. This is far cheaper than other ETF-focused ETFs, such as Vanguard Information Technology ETF, which has 38.5 p/e and only 0.6% of yields.
However, if you are looking for a variety of mega-cap growths without restriction that come with investment in stocks in a particular sector, it might be worth a closer look Vanguard growth etf or Vanguard Mega Cap Growth Etf.
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John Mackey, former Whole Foods Market CEO, Amazon Branch, is a member of the Board of Directors Motley Fool. Randa Zuckerberg, former director of the development of the market and spokeswoman for Facebook and sister of Meta Platform Executive Director Mark Zuckerberg, is a member of the Board of Directors Motley Fool. Suzanne Frey, Executive Director of Alphabeta, is a member of the Board of Directors Motley Fool. Jpmorgan Chase is an advertising partner Motley Fool Money. Daniel Foelber He has positions in Caterpillar and Walt Disney and has the following options: a short March 2025. $ 115 calls to Walt Disney. Motley Fool has positions and recommends alphabet, Amazon, American Tower, Apple, Berksshire Hathaway, Chevron, Costco wholesale, JPMORGAN Chase, Linde, Meta Platforms, Microsoft, Netflix, Nexter Energy, Nvidia, Orle, Palantir Technologies Who,, Vanguard Index Funds-Vanguard Growth Etf, Vanguard real estate ETF, Walmart and Walt Disney. Motley Fool recommends Broadcom, Comcast, Constellation Energy, GE Aerospace, Sherwin-Williams, T-Mobile US, Unitedhealth Group and Verizon Communications and recommends the following options: Long January 2026 180 USD calls on US Tower, Long January 2026 $ 395 on Microsoft, Long January 2026. 90 dollars calls for Prologis, short January 2026. $ 185 calls for US tower and short January 2026 $ 405 calls for Microsoft. Motley Fool has disclosure rules.
