Verizon, AT&T Power Telecom ETFs

NEW YORK ( TheStreet) -- Strong subscriber additions drove stronger-than-expected results from Verizon ( VZ) and AT&T ( T), prompting buying in telecom ETFs.

Vanguard Telecom Services ETF ( VOX) is rising 1.3% on Friday forenoon trading. The fund has a 20% exposure to AT&T and an 18% holding in Verizon.

Telecom HOLDRS ( TTH) is also up 1.3%, although it has an even more concentrated exposure to the telecom service providers. Together the two stocks account for 83% of the fund's portfolio.

Shares of AT&T and Verizon were up 0.8% and 4.1% respectively on Friday morning trading.

Health care and pharmaceutical ETFs were heading lower on Friday morning. PowerShares Dynamic Pharmaceutical Sector ( PJP) was lower by 0.5%. Its top holdings include Johnson & Johnson ( JNJ), Merck ( MRK) and Abbott Laboratories ( ABT).

-- Reported by Shanthi Venkataraman in New York.

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