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3 Communication Services Funds to Boost Your Portfolio
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The Communication Services sector comprises companies that provide wired, wireless, satellite, cable, Internet media services, broadcasting and other communication infrastructure. It was one of Wall Street's biggest success stories in 2024. The Communication Services Select Sector SPDR (XLC) jumped 34.1% through the year and emerged as the S&P 500’s biggest growing sector.
Even in 2025, when the Trump tariff wars have spiked fears of an economic slowdown and the broader tech sector has felt the heat, XLC has progressed 3.5% as of March 25. The Tech Select Sector SPDR (XLK) has declined 5.9% in the same period.
Generative AI has driven growth in this sector. Several communication services companies could be well-positioned to benefit from the continued evolution of generative AI capabilities. In addition to the growing enthusiasm for AI, companies in the interactive media and services segments gained from improving fundamentals. Cost-cutting efforts have aided, while strong consumer spending helped drive steady growth in revenues from digital advertising.
Communication Services, as a sector, is likely to stay robust with the U.S. economy remaining strong. The Trump administration’s AI infrastructure project called “Stargate” is also expected to boost the sector. A few elements of the sector are defensive in nature, like wireless and broadband service providers. So, parts of the sector are holding up relatively well, even in times of weakness and volatility for the broader market.
Hence, astute investors should bet on communication services funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without the array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three such communication services mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive 5-year and 10-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.
Fidelity Select Communication Services Portfolio (FBMPX - Free Report) primarily invests in common stocks of communication services companies. FBMPX advisors employ a fundamental analysis approach to arrive at their investment decisions.
Priyanshu Bakshi has been the lead manager of FBMPX since July 2024. The three top holdings of the fund are Meta (23.9%), Alphabet (23.8%) and Netflix (5%).
FBMPX’s 3-year and 5-year annualized returns are 15.5% and 17.3%, respectively. Its net expense ratio is 0.67%. FBMPX has a Zacks Mutual Fund Rank #2. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Advisor Communication ServicesA (FGDMX - Free Report) primarily invests in common stocks of communication services companies. FGDMX advisors employ a fundamental analysis approach to arrive at their investment decisions.
Priyanshu Bakshi has been the lead manager of FGDMX since July 2024. The three top holdings of the fund are Meta (23.9%), Alphabet (23.8%) and Netflix (5%).
FGDMX’s 3-year and 5-year annualized returns are 15.2% and 17%, respectively. Its net expense ratio is 0.96%. FGDMX has a Zacks Mutual Fund Rank #2.
T. Rowe Price Comm & Tech Investor (PRMTX - Free Report) primarily invests in securities of communications and technology companies. PRMTX advisors may use both growth and value approaches to make their investment decisions. The portfolio may consist of a relatively small number of holdings.
James Stillwagon has been the lead manager of PRMTX since November 2019. The three top holdings of the fund are Meta (8.5%), Netflix (8.4%) and Alphabet (7.7%).
PRMTX’s 3-year and 5-year annualized returns are 12.2% and 14.7%, respectively. Its net expense ratio is 0.77%. PRMTX has a Zacks Mutual Fund Rank #2.
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3 Communication Services Funds to Boost Your Portfolio
The Communication Services sector comprises companies that provide wired, wireless, satellite, cable, Internet media services, broadcasting and other communication infrastructure. It was one of Wall Street's biggest success stories in 2024. The Communication Services Select Sector SPDR (XLC) jumped 34.1% through the year and emerged as the S&P 500’s biggest growing sector.
Even in 2025, when the Trump tariff wars have spiked fears of an economic slowdown and the broader tech sector has felt the heat, XLC has progressed 3.5% as of March 25. The Tech Select Sector SPDR (XLK) has declined 5.9% in the same period.
Generative AI has driven growth in this sector. Several communication services companies could be well-positioned to benefit from the continued evolution of generative AI capabilities. In addition to the growing enthusiasm for AI, companies in the interactive media and services segments gained from improving fundamentals. Cost-cutting efforts have aided, while strong consumer spending helped drive steady growth in revenues from digital advertising.
Communication Services, as a sector, is likely to stay robust with the U.S. economy remaining strong. The Trump administration’s AI infrastructure project called “Stargate” is also expected to boost the sector. A few elements of the sector are defensive in nature, like wireless and broadband service providers. So, parts of the sector are holding up relatively well, even in times of weakness and volatility for the broader market.
Hence, astute investors should bet on communication services funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without the array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three such communication services mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive 5-year and 10-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.
Fidelity Select Communication Services Portfolio (FBMPX - Free Report) primarily invests in common stocks of communication services companies. FBMPX advisors employ a fundamental analysis approach to arrive at their investment decisions.
Priyanshu Bakshi has been the lead manager of FBMPX since July 2024. The three top holdings of the fund are Meta (23.9%), Alphabet (23.8%) and Netflix (5%).
FBMPX’s 3-year and 5-year annualized returns are 15.5% and 17.3%, respectively. Its net expense ratio is 0.67%. FBMPX has a Zacks Mutual Fund Rank #2. To see how this fund performed compared with its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Fidelity Advisor Communication ServicesA (FGDMX - Free Report) primarily invests in common stocks of communication services companies. FGDMX advisors employ a fundamental analysis approach to arrive at their investment decisions.
Priyanshu Bakshi has been the lead manager of FGDMX since July 2024. The three top holdings of the fund are Meta (23.9%), Alphabet (23.8%) and Netflix (5%).
FGDMX’s 3-year and 5-year annualized returns are 15.2% and 17%, respectively. Its net expense ratio is 0.96%. FGDMX has a Zacks Mutual Fund Rank #2.
T. Rowe Price Comm & Tech Investor (PRMTX - Free Report) primarily invests in securities of communications and technology companies. PRMTX advisors may use both growth and value approaches to make their investment decisions. The portfolio may consist of a relatively small number of holdings.
James Stillwagon has been the lead manager of PRMTX since November 2019. The three top holdings of the fund are Meta (8.5%), Netflix (8.4%) and Alphabet (7.7%).
PRMTX’s 3-year and 5-year annualized returns are 12.2% and 14.7%, respectively. Its net expense ratio is 0.77%. PRMTX has a Zacks Mutual Fund Rank #2.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>