Semiconductor ETF (FTXL) Hits New 52-Week High
For investors looking for momentum, First Trust NASDAQ Semiconductor ETF (FTXL) is probably a suitable pick. The fund just hit a 52-week high — up roughly 73.9% from its 52-week low of $23.86/share.
Does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
FTXL in Focus
The underlying Nasdaq US Smart Semiconductor Index is a modified factor weighted index, designed to provide exposure to US companies within the semiconductor industry. The fund charges 60 bps in fees (see all Technology ETFs here).
Why the Move?
The phase-one U.S.-China trade deal, a 5G boom and rising consumer spending on technology have propelled the sector. Expectations of higher smartphone sales have given an added boost. IDC expects the smartphone market to record 1.5% growth in 2020, after three straight years of global contraction. All these sent this semiconductor ETF to a 52-week high.
More Gains Ahead?
The fund has a Zacks ETF Rank #3 (Hold). It also has a positive weighted alpha of 66.80, which gives cues of further rally.
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First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports
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