Invest in Media and Entertainment with This Fund

Buy when there’s blood in the streets.

It’s one of the oldest pearls of wisdom on Wall Street, and for good reason. You see, often the sectors that have been bloodied the most one year are the ones that come back the strongest the next year. So, with this bloody notion in mind, I present to you the Communication Services Select Sector SPDR (NYSEARCA: XLC).

XLC tracks a market-cap-weighted index of US telecommunication and media & entertainment components of the S&P 500 index. The Communication Services Select Sector SPDR Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Communication Services Select Sector Index.

It seeks to provide an effective representation of the communication services sector of the S&P 500 Index and to provide precise exposure to companies from telecommunication services, media, entertainment and interactive media and services. It also allows investors to take strategic or tactical positions at a more targeted level than traditional style-based investing.

The fund generally invests its assets in the securities making up the index. The index includes stocks that have been identified as Communication Services companies by the GICS (Global Industry Classification Standard), including securities of companies from the following industries: diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services. The fund is non-diversified.

Source: www.stockcharts.com

As of this writing, the fund trades around $51.44 a share, giving it a 1.10% distribution yield. Its expense ratio is 0.10%, meaning it is relatively inexpensive to hold compared to other exchange-traded funds.

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However, as with any opportunity, potential investors should conduct their own due diligence in deciding whether this fund fits one’s own individual investing needs and portfolio goals.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Intelligence Report, Successful Investing, the Bullseye Stock Trader, and The Deep Woods (formerly the Weekly ETF Report). His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.