Alphabet Inc. Class A (GOOGL  ) and Class C (GOOG  ) reached record highs of $210.52 and $211.09 on Aug 25, thanks to AI-powered products, a surging Google Cloud business, and fresh partnerships. For ETF investors, the action is bringing a few communication services funds with substantial Alphabet exposure into the spotlight.

Who's Holding The Biggest Piece?

Fidelity MSCI Communication Services Index ETF (FCOM  ): With 25% of its holdings in Alphabet Class A and Class C together, FCOM is a clean play on the company. It follows the MSCI USA IMI Communication Services Index and also owns names such as Meta Platforms Inc (META  ) and Netflix Inc (NFLX  ).

Vanguard Communication Services ETF (VOX  ): Alphabet constitutes more than 23% of this fund, which holds almost $6 billion in assets. VOX offers extensive communication exposure but is heavily reliant on Alphabet and Meta.

iShares Global Comm Services ETF (IXP  ): This 24% Alphabet holding fund provides investors with an international flavor, blending U.S. titans such as Alphabet with global telecom names.

Communication Services Select Sector SPDR Fund (XLC  ): With 20% Alphabet exposure, XLC is the largest in the group by AUM, holding $25 billion, and is popular with institutions seeking a sector-diversified approach.

Why They Matter Now

Alphabet's second-quarter results last month solidified its position as a leader in AI and cloud computing. Google Cloud revenue leaped almost 32% to $13.62 billion, beating every expectation.

In addition to the strong quarter, Alphabet's aggressive push into partnerships is fueling the momentum. The $10 billion, six-year cloud agreement with Meta, along with reportedly ongoing discussions with Apple to integrate Alphabet's Gemini AI models into Siri, would grant it access to nearly a third of the world's smartphones, combined with Samsung's rollout. Its self-driving subsidiary, Waymo, now valued at $173 billion and taking more than 700,000 monthly paid rides, demonstrates that Alphabet is playing long ball beyond its core search business.

For ETF investors, these trends drive sector performance and flows. Communication services ETFs with large Alphabet weightings offer exposure to AI, cloud computing, advertising, and autonomous technology, while also being diversified to mitigate single-stock risk. That's why funds such as FCOM, VOX, and XLC are garnering attention as Alphabet solidifies itself at the hub of several growth themes.

With Alphabet closing in on RBC and WestPark Capital analysts' $220 target, communication services ETFs may remain a favorite among investors following AI, cloud, and digital ad trends in one basket.