An Overview of Fund Flows in Technology Exchange-Traded Funds
Overview of SMH
The Market Vectors Semiconductor ETF (SMH) tracks a market cap–weighted portfolio of US semiconductor companies. This ETF tracks the performance of 26 publicly listed companies in the US semiconductor sector.
The market capitalization of SMH is $426 million, and it has an expense ratio of 0.35%. The average daily volume of shares traded is $167.7 million. The price-to-earnings ratio of SMH is 17.16x, and its price-to-book ratio and distribution yield stand at 3.12x and 1.16%, respectively.
The top five holdings of the ETF and their weights are:
- Intel Corp. (INTC): 18.58%
- Taiwan Semiconductors (TSM): 12.38%
- ASML Holding: 4.73%
- Texas Instruments (TXN): 5.48%
- Qualcomm (QCOM): 10.67%
These five holdings comprise more than 50% of the total portfolio. Intel comprises 0.87% of the SPDR S&P 500 ETF (SPY).
Fund flows in SMH
In the trailing one-month period, net fund inflows for the Market Vectors Semiconductor ETF (SMH) were $130.20 million. In the trailing 12-month (or TTM) period, net fund outflows stood at $80.68 million. Fund flows in the trailing one-week and trailing three-month periods for SMH were $160.49 million and -$34.84 million, respectively.
SMH generated investor returns of 2.28% in the trailing 12-month period and -2.48% in the trailing one-month period. In comparison, it generated 22.27% returns in the trailing three-year period, 0.22% year-to-date, and 18.87% in the last three months. We can see that fund flows are directly related to ETF returns.
On November 25, 2015, SMH closed the trading day at $54.82. Based on this figure, let’s look at how the stock performed in terms of its moving averages:
- 6% above its 100-day moving average of $51.87
- 4% above its 50-day moving average of $52.83
- 1% above its 20-day moving average of $54.28
Relative Strength Index
SMH’s 14-day RSI (relative strength index) is 56, which shows that the ETF is slightly overbought. Generally, if the RSI is above 70, it indicates the stock is overbought. An RSI figure below 30 suggests that a stock has been oversold.
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