IYZ - ETF AI Analysis

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iShares U.S. Telecommunications ETF (IYZ)

Rating:71Outperform

Price Target:―

IYZ, the iShares U.S. Telecommunications ETF, has a solid overall rating driven mainly by large positions in financially strong, cash-generative telecom leaders like Verizon and AT&T, along with growth-focused tech names such as Cisco and Arista Networks that benefit from AI and cloud trends. These high-quality holdings support the fund’s quality and growth potential, while smaller positions like AST SpaceMobile, which faces weak profitability and regulatory and financial challenges, slightly weigh on the rating. The main risk is the fund’s concentration in the U.S. telecommunications and related communications infrastructure space, which can make performance more sensitive to sector-specific competition, debt levels, and regulatory changes.

Positive Factors

Focused Telecom Exposure

The fund concentrates on U.S. telecommunications and related technology companies, giving investors targeted access to this specific part of the market.

Mix of Established and Growing Companies

The portfolio blends large, well-known telecom names with smaller, more growth-oriented stocks, which can provide both stability and growth potential.

Meaningful Technology Allocation

A significant portion of the fund is invested in technology-related businesses, which can benefit if demand for networking and communications technology remains strong.

Negative Factors

Recent Weak Overall Performance

The ETF has delivered slightly negative returns so far this year and over the past month, signaling recent performance softness.

Heavy Reliance on a Few Large Holdings

A small number of companies, such as Cisco, Verizon, and AT&T, make up a large share of the fund, increasing the impact if these stocks continue to struggle.

Limited Geographic Diversification

With almost all assets in U.S. companies, the fund offers little protection if the U.S. telecom and communications market faces broad challenges.

IYZ vs. SPDR S&P 500 ETF (SPY)

AUM802.35M

RegionNorth America

Expense Ratio0.38%

Beta0.76

IssueriShares

Inception DateMay 22, 2000

Dividend Yield1.79%

Asset ClassEquity

Index TrackedRussell 1000 Telecommunications RIC 22.5/45 Capped Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume2,661,067

30 Day Avg. Volume1,482,339

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

42.00

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering21

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

IYZ Summary

The iShares U.S. Telecommunications ETF (IYZ) tracks the Russell 1000 Telecommunications Index, focusing on U.S. companies that power phone, internet, and digital communication. It holds well-known names like Verizon and AT&T, along with network and equipment makers such as Cisco Systems. Someone might invest in this ETF to get targeted exposure to the telecom and communication technology theme in a single, diversified fund, potentially benefiting from growing demand for data and 5G. A key risk is that it is heavily concentrated in telecom and tech stocks, so its price can swing more if that sector struggles.

How much will it cost me?The iShares U.S. Telecommunications ETF (IYZ) has an expense ratio of 0.38%, which means you’ll pay $3.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is a sector-focused fund, which typically requires more active management compared to broad-market index funds.

What would affect this ETF?The iShares U.S. Telecommunications ETF (IYZ) could benefit from the growing demand for 5G technology and advancements in digital communication, as well as the stability of major telecom companies like Cisco and AT&T. However, it may face challenges from rising interest rates, which can increase borrowing costs for telecom firms, and regulatory changes that could impact the sector's profitability. Additionally, economic slowdowns could reduce consumer spending on communication services, potentially affecting the ETF's performance.

IYZ Top 10 Holdings

IYZ is heavily anchored in U.S. telecom and networking, with Cisco acting as a steady engine while Verizon and AT&T have recently shifted into a higher gear, helping drive the fund’s rebound. On the more growth-oriented side, Lumentum and Ciena are sprinting ahead, adding a tech-flavored boost to returns, even if their momentum comes with some risk. Arista has been more mixed lately, taking a brief pause after earlier gains. Overall, this is a U.S.-centric bet on communications infrastructure, with a tilt toward both classic carriers and networking tech names.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CSCO	Cisco Systems	18.94%	$153.27M	$308.80B	23.79%	77 Outperform
VZ	Verizon	13.08%	$105.88M	$202.66B	15.18%	81 Outperform
T	AT&T	12.16%	$98.43M	$195.18B	5.11%	71 Outperform
LITE	Lumentum Holdings	5.51%	$44.59M	$42.43B	810.39%	61 Neutral
CIEN	Ciena	4.64%	$37.52M	$43.99B	298.37%	70 Outperform
CMCSA	Comcast	4.20%	$34.03M	$113.69B	-13.52%	74 Outperform
MSI	Motorola Solutions	4.18%	$33.85M	$74.81B	9.68%	70 Neutral
ANET	Arista Networks	4.05%	$32.80M	$175.34B	35.09%	83 Outperform
TMUS	T Mobile US	4.02%	$32.57M	$234.97B	-18.75%	76 Outperform
TIGO	Millicom International Cellular SA	3.73%	$30.17M	$10.77B	145.56%	71 Outperform

IYZ Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

35.06

Positive

100DMA

33.68

Positive

200DMA

31.56

Positive

Market Momentum

MACD

1.22

Negative

RSI

77.93

Negative

STOCH

83.61

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IYZ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 37.10, equal to the 50-day MA of 35.06, and equal to the 200-day MA of 31.56, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 77.93 is Negative, neither overbought nor oversold. The STOCH value of 83.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IYZ.

IYZ Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
IYZ	―	―	$802.35M	0.38%	71 Outperform
SIXG	―	―	$698.47M	0.30%	70 Outperform
QCLN	―	―	$605.86M	0.56%	66 Neutral
FEPI	―	―	$588.43M	0.65%	61 Neutral
PNQI	―	―	$580.61M	0.60%	71 Outperform
XTL	―	―	$267.47M	0.35%	61 Neutral

Performance Comparison

IYZ

iShares U.S. Telecommunications ETF

39.03

11.41

41.31%

SIXG

Defiance Connective Technologies Etf

―

QCLN

First Trust Nasdaq Clean Edge Green Energy Index Fund

―

FEPI

REX FANG & Innovation Equity Premium Income ETF

―

PNQI

Invesco NASDAQ Internet ETF

―

XTL

SPDR S&P Telecom ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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