Telecom trailed the S&P 500 by less when the Fed was tight and chips were falling
iShares US Telecom ETF (IYZ) minus S&P 500, average annualized monthly return, Jun 2000 to Oct 2026
Silvia Insights research desk
Tight money is supposed to sink telecom stocks, but paired with a chip selloff it has historically narrowed their gap with the market.
Since June 2000, the iShares US Telecom ETF (IYZ) trailed the S&P 500 by about 4.5% a year in the 78 months when the Fed's latest rate move was a hike and the Philadelphia Semiconductor Index ended the month at least 20% below its record close. In every other month, it trailed by 7.9% a year.
Both conditions are back, after a September Fed hike to 3.75-4.00% and with the chip index 24.3% below its June peak as of Oct 26. The most recent stretch, April 2022 to April 2023, still saw telecom fall 25% and lag the S&P by about 17 points.
Even in those 78 months, telecom beat the index only about half the time.
This chart comes from a new Silvia Insights research report. Members received the full analysis earlier this week, including the actionable trade ideas, risks and what comes next.
Research is for informational purposes and does not constitute personalized investment advice.
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