For Immediate Release
Chicago, IL – September 20, 2021 – Zacks.com announces the list of ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares PHLX Semiconductor ETF SOXX, VanEck Vectors Semiconductor ETF SMH, SPDR S&P Semiconductor ETF XSD, Invesco Dynamic Semiconductors ETF PSI and First Trust Nasdaq Semiconductor ETF FTXL.
Here are highlights from Friday’s Analyst Blog:
Semiconductor ETFs Soaring to New Heights
Semiconductor ETFs have been rallying this year and are hitting new peaks on several occasions. This is especially true as the pandemic has bolstered demand for chips in leaps and bounds, leading to the worst global shortage in many years.
Semiconductors have been the most important drivers of the overall growth in technology, given the use of chips in day-to-day life from cars, electronic gadgets to planes and weapons. The demand is likely to continue to trend higher given the increased digitization in various corners like healthcare, transport, financial systems, defense, agriculture and retail among others.
The rapid adoption of cutting-edge technology like cloud, Internet of Things, autonomous cars, gaming, wearables, VR headsets, drones, virtual reality devices, artificial intelligence, cryptocurrencies, 5G and other advanced information technologies should continue to fuel growth.
The global semiconductor market is expected to grow 12.5% year over year to reach $522 billion in 2021, according to the International Data Corporation. Per the World Semiconductor Trade Statistics (WSTS), the worldwide semiconductor market is expected to surge 25% in 2021 following 6.8% growth in 2020.
All major product categories will likely see increases with memory set to register the largest revenue growth of 37.1%, followed by 29.1% growth in the analog segment and 26.2% in logic (read: 4 Chip ETFs You Should Not Ignore).
ETFs to Tap
Given the bullish trend, semiconductor ETFs are soaring this year. Below we have highlighted these in detail. All these have a top Zacks ETF Rank #1 (Strong Buy):
iShares PHLX Semiconductor ETF
This ETF follows the PHLX SOX Semiconductor Sector Index and offers exposure to 30 U.S. companies that design, manufacture and distribute semiconductors. The fund has amassed $7.4 billion in its asset base and trades in a solid average volume of around 668,000 shares a day. It charges 43 bps in fees a year from its investors (read: Semiconductor ETF Hits New 52-Week High).
VanEck Vectors Semiconductor ETF
This fund provides exposure to 25 securities by tracking the MVIS US Listed Semiconductor 25 Index. The product has managed assets worth $6 billion and charges 35 bps in annual fees and expenses. It is heavily traded with volume of around 3.1 million shares per day.
SPDR S&P Semiconductor ETF
This fund tracks the S&P Semiconductor Select Industry Index, holding 40 stocks in its portfolio. It has amassed $1.1 billion in its asset base while trades in an average daily volume of about 53,000 shares. It charges 35 bps in fees per year.
Invesco Dynamic Semiconductors
This fund tracks the Dynamic Semiconductor Intellidex Index, holding 31 securities in its basket. It has AUM of $696.2 million and sees moderate average daily volume of 31,000 shares. The expense ratio is 0.57% (read: Chip Shortages: ETF Winners and Losers).
First Trust Nasdaq Semiconductor
This fund offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. Holding 30 stocks in its basket, FTXL has accumulated $77.5 million in AUM. The average trading volume is light at around 7,000 shares and expense ratio is 0.60%
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Invesco Dynamic Semiconductors ETF (PSI): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
iShares Semiconductor ETF (SOXX): ETF Research Reports
SPDR S&P Semiconductor ETF (XSD): ETF Research Reports
First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports
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