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Semiconductor ETF (XSD) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, SPDR S&P Semiconductor ETF (XSDis probably on the radar now. The fund just hit a 52-week high, which is up roughly 34.5% from its 52-week low of $60.13/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:

XSD in Focus

The fund looks to track the price and yield performance of about 35 semiconductor stocks. The fund has Universal Display, Xilinx and Inphi Corporation as its top three holdings. It charges 35 bps in fees (see all Technology ETFs here).

Why the Move?

After several rounds of discussion, President Donald Trump announced that he is delaying the increase of tariffs on about $200 billion in Chinese goods, citing “substantial progress” in trade talks with Beijing. With semiconductor stocks having considerable revenue exposure to China, the fund has all reasons to hit a high.

More Gains Ahead?

The fund has a Zacks Rank #3 (Hold). Also, the fund has a positive weighted alpha of 15.90, which hints at more gains. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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SPDR S&P Semiconductor ETF (XSD): ETF Research Reports
 
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