Fidelity MSCI Communication Services ETF (FCOM) Hits 52-Week High — Is It Still a Buy?
FCOM hits a 52-week high at $74.29 on NYSEARCA. Learn what to consider before buying the Fidelity MSCI Communication Services Index ETF - momentum, fees, risks.
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Fidelity MSCI Communication Services Index ETF (NYSEARCA: FCOM) reached a new 52-week high during mid-day trading on Monday, trading as high as $74.27 and last changing hands at $74.2910. Volume was modest at 30,734 shares, and the ETF had previously closed at $73.64. That fresh high has investors asking whether FCOM is still a buy.
A 52-week high signals strength and momentum. For momentum-oriented investors, a breakout above prior resistance can indicate continued upside, especially when the broader communication services sector is performing well. FCOM’s move suggests renewed investor interest in communication services stocks — a group that includes media, entertainment, and digital advertising names that can benefit from increased consumer engagement and ad spending.
But momentum alone isn’t a buy signal. Investors should weigh several key factors before adding FCOM to a portfolio. First, review the ETF’s exposure and concentration: communication services can be top-heavy, with a few large-cap names driving performance. Second, check the expense ratio and tracking error to ensure the ETF is an efficient way to access the MSCI Communication Services Index. Fees may be small but matter over the long run.
Other considerations include valuation and macro risks. A new high can reflect strong fundamentals or simply market enthusiasm that pushes valuations higher. Rising interest rates, regulatory scrutiny of large tech and media companies, or a slowdown in ad revenues could apply pressure. Assess your time horizon and risk tolerance — communication services ETFs often exhibit higher volatility than broad-market funds.
For long-term investors seeking targeted exposure to communication services, FCOM can be a useful holding as part of a diversified portfolio. Short-term traders may view the breakout as an opportunity for momentum trades but should set clear stop-losses and manage position size. Always compare FCOM with similar ETFs on liquidity, fees, and holdings to find the best fit.
Bottom line: FCOM’s 52-week high is a positive signal, but it doesn’t automatically make the ETF a buy for every investor. Do your homework—inspect holdings, costs, recent performance, and macro drivers—and consider consulting a financial advisor to see if FCOM aligns with your investment goals and risk profile.
Published on: January 27, 2026, 11:05 am
