By Market News Video Staff, Friday, October 22, 3:00 PM ET
Both the Telecom HOLDRs ETF (TTH) and the Vanguard Telecommunication Services ETF (AMEX:VOX) are strugging on Friday afternoon following disappointing earnings from Verizon Communications (NYSE:VZ). Earnings fell 25% as the company's landline business unit was barely above breakeven in the quarter. Verizon sold the bulk of its landline business to Frontier Commnications over the summer prompting the rapid decline in profit from the business unit in the first quarter.
Both TTH and VOX has sizable exposure to Verizon Communications and the lackluster earnings are being felt today. TTH holds approximately 26% of its portfolio in VZ stock, second only to AT&T (NYSE:T) and VOX holds approximately 22% of its portfolio in VZ stock, the largest of the 38 holdings in the ETF.
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