ETF Sector: Communication Services Telecom ETFs are a type of exchange-traded fund that invests in telecom companies. These companies can include telecom service providers, telecom equipment manufacturers, and telecom infrastructure providers. Telecom ETFs offer investors exposure to the telecom sector without having to invest in individual telecom stocks. Telecom ETFs are typically index funds that track telecom-related indices, such as the SPDR S&P Telecom ETF or the First Trust NASDAQ Global Telecom ETF. Telecom ETFs tend to be volatile due to the cyclical nature of the telecom industry. However, they can offer potential capital appreciation in periods of strong industry fundamentals.