Benzinga·2026-01-07 11:15Core Insights - The S&P 500 Communication Services sector is experiencing an unprecedented three-year stock market run, surpassing the previous highs of the 2000 Dot-Com Bubble [1][2]. Performance Metrics - The sector has rallied 184% over the last three years, marking the strongest three-year gain on record, exceeding the previous benchmark of 155% from the tech bubble [2]. - The sector index has advanced 21.21% over the last six months and 28.97% over the last year [7]. Driving Forces - The significant momentum in the sector is primarily driven by major companies, particularly Meta Platforms Inc. and Alphabet Inc., which have seen returns of 588% and 259% respectively since the bear market lows of 2022 [4][5]. - The overall sector has rallied nearly 200% since the lows of 2022, with these two companies masking weaker performances in other areas of the market [4][5]. Historical Context - The recent surge has broken the historical ceiling set in March 2000, with the Communication Services sector index now trading 39% above that peak [6]. ETF Performance - Notable ETFs tracking the Communication Services sector include: - State Street Communication Services Select Sector SPDR ETF: 6-Month Performance: 9.65%, One-Year Performance: 19.92% [8] - Vanguard Communication Services Index Fund ETF: 6-Month Performance: 14.64%, One-Year Performance: 22.97% [8] - Invesco S&P 500 Equal Weight Communication Services ETF: 6-Month Performance: 5.22%, One-Year Performance: 16.64% [8]