GET DAILY SIGNALSFCOM: A Low-Cost Path to U.S. Communication Services Exposure
Key Takeaways
- FCOM is the Fidelity MSCI Communication Services Index ETF, a passively managed fund that tracks the MSCI USA IMI Communication Services 25/50 Index.
- It provides broad exposure to the U.S. communication services sector, spanning internet platforms, entertainment, media, telecommunications, and advertising.
- Launched in October 2013, the fund is issued by Fidelity Investments and carries a low net expense ratio of 0.08%.
- The portfolio is heavily concentrated, with top positions such as META, GOOGL, and GOOG accounting for a large share of assets.
- As a sector-focused, non-diversified fund, FCOM is best suited for investors seeking targeted communication services exposure rather than a diversified core holding.
Getting Started with FCOM
The Fidelity MSCI Communication Services Index ETF (FCOM) is an exchange-traded fund that offers investors exposure to the U.S. communication services sector. The fund spans companies involved in interactive media, internet platforms, entertainment, media, telecommunications, and advertising, making it a convenient way to gain broad access to many of the businesses that shape how people communicate, consume content, and connect digitally.
ETF Overview and Structure
FCOM seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Communication Services 25/50 Index. This is a market-capitalization-weighted index that represents the communication services sector of the U.S. equity market. The fund is passively managed, meaning it aims to replicate its benchmark rather than rely on active stock selection, and it typically invests at least 80% of its assets in securities included in the underlying index.
The ETF was launched on October 21, 2013, and is issued by Fidelity Investments. It lists on NYSE Arca and holds roughly 90 to 100 securities, depending on the reporting date. Its investment strategy centers on mirroring the index through a representative sampling approach. One thing that stands out is its low cost: the net expense ratio is 0.08%, well below the average for equity ETFs. This low fee can help minimize the drag on long-term returns. I also checked this using Tickeron’s AI Screener to see how the fund compares to others in the industry.
Portfolio Holdings and Sector Exposure
Because the index is market-capitalization-weighted, larger companies dominate the portfolio. The largest holdings have historically included:
- META — Meta Platforms, Inc., the parent of Facebook, Instagram, and WhatsApp
- GOOGL and GOOG — Alphabet Inc., the parent of Google and YouTube
- DIS — The Walt Disney Company
- NFLX — Netflix, Inc.
- VZ — Verizon Communications
- T — AT&T
- CMCSA — Comcast Corporation
- TMUS — T-Mobile US
- WBD — Warner Bros. Discovery
The fund's sector exposure is almost entirely communication services, which typically accounts for well over 90% of assets. The portfolio is notably top-heavy, with the top 10 holdings frequently representing more than 70% of total assets. This concentration means the performance of a handful of large internet and media companies can have an outsized influence on the fund's returns.
Why Investors Follow FCOM
Investors follow FCOM as a straightforward, low-cost vehicle for gaining communication services exposure. The sector blends two distinct characteristics: high-growth, advertising-driven internet platforms and entertainment businesses, alongside more mature, dividend-paying telecommunications carriers. This mix gives the fund a distinctive investment strategy that can serve as a satellite position alongside broader market funds. From what I see, the fund is also relevant for its ties to long-running themes such as digital advertising, streaming media, connectivity, and the rollout of next-generation networks.
Risks and Important Considerations
Despite the diversification inherent in an ETF, FCOM carries meaningful risks. First, it is classified as a non-diversified fund and is heavily concentrated in its largest holdings, so a downturn in a few mega-cap internet or media stocks can significantly affect performance. Second, as a sector fund, it offers little protection from communication services-specific risks, including shifts in advertising spending, regulatory scrutiny of major platforms, and changing consumer media habits. The fund is also subject to general equity market risk and can be more volatile than a broad-market index. While index funds generally have low tracking error, small deviations can still occur. Finally, although telecommunications holdings contribute some income, the fund's overall yield is modest, so it should not be viewed primarily as an income-generating investment.
Using Tools for Deeper Analysis
In my research process, I frequently rely on Tickeron’s AI-powered platforms to compare holdings like those in FCOM against broader market trends and to refine my screening criteria. This helps confirm whether the fund aligns with specific portfolio needs without adding unnecessary complexity.
Conclusion
The Fidelity MSCI Communication Services Index ETF (FCOM) stands out as a low-cost, passive way to access the U.S. communication services sector in a single trade. Its index-based approach, broad yet concentrated portfolio of internet platforms, media, entertainment, and telecom companies, and 0.08% expense ratio make it a distinctive tool for investors seeking targeted sector exposure. As with any concentrated sector fund, its usefulness depends on an investor's broader portfolio and tolerance for the risks inherent in the communication services space.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
FCOM's RSI Indicator climbs out of oversold territory
The RSI Indicator for FCOM moved out of oversold territory on November 04, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In 30 of the 32 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 09, 2026. You may want to consider a long position or call options on FCOM as a result. In 76 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 84%.
The Moving Average Convergence Divergence (MACD) for FCOM just turned positive on November 09, 2026. Looking at past instances where FCOM's MACD turned positive, the stock continued to rise in 43 of 50 cases over the following month. The odds of a continued upward trend are 86%.
Following a +2.95% 3-day Advance, the price is estimated to grow further. Considering data from situations where FCOM advanced for three days, in 284 of 332 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.
FCOM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
FCOM moved below its 50-day moving average on October 16, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FCOM crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 57%.
The 50-day moving average for FCOM moved below the 200-day moving average on October 28, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FCOM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
The Aroon Indicator for FCOM entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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