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Semiconductor ETF (PSI) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, PowerShares Dynamic Semiconductors ETF PSI is probably on radar now. The fund just hit a 52-week high and is up over 76% from its 52-week low price of $21.03/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

PSI in Focus    

This product offers exposure to the U.S. semiconductor stocks. No stock accounts for more than 5.48% of the fund. NVIDIA Corp, Intel Corp and Micron Technology are top three stocks of the fund. The fund charges 68 bps in fees (see all technology ETFs here).

Why the Move?

The holiday season has reached its peak with digital shopping getting considerable prominence. This has given a boost to semiconductor stocks. In any case, the area is a beneficiary of emerging technologies like Internet of Things (IoT) and consolidation activities.

More Gains Ahead?

The fund has a Zacks ETF Rank #2 (Buy). Also, PSI should continue with its strength given a positive weighted alpha of 52.10. Since a positive weighted alpha hints at more gains, there is definitely still some promise for investors who want to ride this surging ETF a little further.

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PWRSH-DYN SEMI (PSI): ETF Research Reports
 
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